Petrobangla proposes hike in CNG price

Petrobangla has sent a proposal to the Energy and Mineral Resources Division (EMRD) to increase the price of liquefied natural gas (CNG) used in power generation and vehicles, reports bdnews24.com.

An official of the state-owned company told bdnews24.com that the proposal also highlights the new prices of gas in the power and CNG sectors.

However, Petrobangla Chairman Md Abdul Mannan said that the proposal sent to the ministry is intended to increase the margin for CNG station owners.

Petrobangla's proposal calls for raising the price of gas used in power generation to Tk 25 per cubic metre and the price of CNG used in vehicles to about Tk 65.

According to the latest order from the Bangladesh Energy Regulatory Commission (BERC) on Jul 2, the current price of gas used in power generation is Tk 15.50 per cubic metre.

This means the proposal includes a price hike of Tk 9.50 per cubic metre, or about 61 percent.

According to the BERC order, the price of gas per cubic metre for CNG consumers is Tk 38. The current pump price of CNG for vehicles, including the margin for station owners, is Tk 43.

If that price is increased to Tk 65, it will be a hike of Tk 22 per cubic metre, or about 51 percent.

The proposal to increase the price came to light amid a decrease in gas supply to the national grid due to a fire and technical malfunction at the floating LNG terminal in Moheshkhali.