The Bangladesh gas price for fertilizer plants has almost doubled. The rate is now Tk 29.25 per unit, up from Tk 16 per unit earlier. This marks one of the biggest price changes for fertilizer manufacturers in recent years.
The Bangladesh Energy Regulatory Commission (BERC) announced the revised rate on 23 November. The decision comes at a time when fertilizer factories are struggling with higher raw material costs.
Why Bangladesh Increased Gas Price for Fertilizer Plants
In October, Petrobangla and gas distributors demanded a hike to Tk 40 per unit. After evaluation, BERC set Tk 29.25, trying to balance business costs with farmers’ needs. High LNG import costs are driving the change.
BERC Chairman Jalal Ahmed said that gas pricing must consider agriculture’s importance. The farm sector supports millions of livelihoods. Any rise in fertilizer production cost can affect crop prices and food security.
Impact on Fertilizer Production and Agriculture
Bangladesh depends heavily on domestic production to supply urea and other fertilizers. Plants now face higher operational costs due to the increased gas tariff. The government may need to increase subsidies to keep fertilizer affordable.
Industry experts warn that the price hike could raise fertilizer subsidy burden, pressure the budget, and impact farmers during peak cultivation seasons.
Managing Energy Costs and Food Security Together
Ahmed stated that the commission will continue monitoring global LNG prices. He also stressed that protecting agriculture is a national priority.
The Bangladesh gas price for fertilizer plants signals a challenging time ahead for producers. However, the government aims to ensure stable fertilizer supply and safeguard food security through balanced policy decisions.
