BERC Raises Fertilizer Factory Gas Price to Tk 29.25 per Cubic Meter, Effective from December 1
The price of gas used in fertilizer factories has been increased from 16 taka to 29 taka 25 paisa per cubic meter by raising 13 taka 25 paisa. Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed has ordered this new price to be effective from December 1.
The new price was announced at a press conference on Sunday (23 November) afternoon. Among others present at the press conference were— BERC members Md. Abdur Razzak, Mizanur Rahman, Brigadier General (Retd.) Shahid Sarwar, and Syeda Sultana Razia.
It is to be noted that on October 6, at a public hearing, Petrobangla and the gas distribution companies proposed to BERC to increase the gas price from 16 taka to 40 taka per cubic meter. The technical committee of the commission had given an opinion to set the price at 30 taka per cubic meter.
Earlier, in Petrobangla’s proposal, it was stated that if the price is increased, 7 additional cargoes of LNG will be imported and supplied for fertilizer. For 6 months (October–March), full-scale (250 million cubic feet) gas supply would be provided. In the remaining 6 months, gas would be supplied at the rate of 165 million in April–May, 175 million in June, and 130 million in July–September.
Currently, the production cost of per kg of urea fertilizer stands at about 38 taka. It is being sold in the market at 27 taka per kg. And BCIC is selling to dealers at 25 taka per kg. In this, a trade gap of 13 taka per kg is being given as subsidy.
