Petrobangla Denies Gas Price Hike Plans Amid Public Speculation and Energy Crisis

Dhaka, August 1, 2026 — The government currently has no plan to increase gas prices, Petrobangla and the Energy and Mineral Resources Division said on Saturday, urging people not to be misled by recent media reports suggesting a hike. 📋 The clarification came via a public notice issued following reports carried by various media outlets about a possible increase in gas prices. ⚠️

📊 The authorities clarified that there is no proposal at this moment to raise gas tariffs. In the public notice, they stated:

"The government has no plan to increase gas prices at this moment."

🏭 Petrobangla and the Energy and Mineral Resources Division requested all concerned not to be confused or misled by speculative reports regarding any gas price hike. The clarification came amid public discussion triggered by recent media reports on a possible increase in gas prices. 📋

📋 Context: Gas Crisis and Price Concerns

⚡ The clarification comes amid Bangladesh's ongoing gas crisis that has severely affected industrial production:

• 🏭 Cut textile production by 50% — BTMA reports mills operating at reduced capacity
• 👕 Disrupted RMG manufacturing — BGMEA and BKMEA urged CNG from filling stations for factories
• 💰 LNG spot prices surge 34% — Petrobangla paying $22.35/MMBTu vs $11-12 contracted rate
• ⛽ Damaged FSRU — under repair at Moheshkhali, expected back by August 10
• 📈 Third FSRU approved — PM announced it will be dedicated exclusively to industrial supply
• 📦 ISO container imports — government considering direct gas supply to factories

💡 Why Price Hike Speculation Arose

📊 Several factors contributed to the speculation about gas price increases:

• 💰 Higher LNG import costs — spot LNG at $22.35/MMBTu vs $11-12 contracted; Petrobangla paid ~$75M and ~$73M for two spot cargoes
• 📉 S&P downgrade — negative sovereign credit rating outlook may affect procurement costs
• 🏭 Industrial gas crisis — factories desperate for reliable supply, willing to pay more
• ⛽ FSRU damage — reduced regasification capacity creating supply shortage
• 📊 Subsidy pressure — government bearing higher import costs without passing to consumers
• 💵 Dollar appreciation — taka depreciation increasing LNG import costs

🔮 Government Position and Relief for Industry

🏭 The government's denial of price hike plans provides relief to industries already struggling with:

• ⚡ Energy shortages — gas crisis cutting production across textile and RMG sectors
• 💰 Higher freight costs — Middle East conflict tripling shipping rates to $6,000-$11,000 per container
• 💵 Dollar appreciation — increasing import costs for raw materials
• 📊 High lending rates — 14-16% interest on business loans
• 📈 Export pressure — $100 billion export target by 2030 requires competitive production costs

🎯 For Bangladesh's export economy, stable gas prices are critical. Any increase would directly raise production costs, further eroding export competitiveness at a time when the country is already facing multiple challenges including freight cost surges and gas supply disruptions. The government's clarification signals its commitment to protecting industries from additional cost burdens during the current crisis. 📈

📋 Medium-Term Energy Strategy

🌐 While the immediate pricing question is resolved, the underlying financial pressure remains. The government's strategy appears to be absorbing the higher costs temporarily while working on medium-term solutions:

• ⛽ Third FSRU at Maheshkhali — approved by cabinet, dedicated exclusively to industrial supply
• 📦 ISO container gas imports — for direct factory delivery
• 📅 Damaged FSRU repair — PM announced expected resumption by August 10
• 🤝 13-year Gunvor deal — Tk 715 billion LNG import agreement with US firm
• ⚡ Solar power initiative — PM announced priority for solar investors in economic zones

📊 Together, these measures represent a comprehensive strategy to address both the immediate gas crisis and long-term energy security. The government's decision to absorb the higher LNG import costs rather than passing them to consumers reflects the priority placed on industrial competitiveness and export growth during this critical period. 🚀