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Consumers Association of Bangladesh (CAB) rejects Bangladesh Energy Regulatory Commission (BERC)'s proposal to increase gas prices for industrial and captive power generation, which the Ministry of Power, Energy and Mineral Resources has approved. Consumers protested and made their demands known during the public hearing on February 26, 2025. According to the price hike proposal, if the gas price for industrial and captive power increases by Tk 75.
72, the projected additional annual revenue would be around Tk 3,241 crore, assuming an annual gas supply of 28,224 million cubic metres. Additionally, the system loss in gas distribution and transmission is 13.53 percent, whereas BERC reports it as only 1.
12 percent. The remaining losses result from waste and theft. If these were adjusted, the current pricing model would lead to Tk 10,870 crore in savings.
The data shows that merely ensuring fair and rational VAT and dealing with system loss would prevent Tk 14,418 crore in expenses annually. However, instead of addressing the real system loss and predatory costs in gas supply, the Ministry of Power, Energy and Mineral Resources approved the price hike proposal, and BERC endorsed it. As a result, both entities stand accused of compromising consumer interests and rights, depriving consumers from fair energy pricing.
Moreover, the total gas supply in 2022-23, 2023-24, and 2024-25 was 28,640, 28,037, and 28,224 (estimated) million cubic metres, respectively. Domestic gas supply during these years was 22,651, 21,082, and 20,067 (estimated) million cubic metres, respectively. This gradual decline in gas supply in the country intensifies the energy crisis.
Currently, 25 percent of the gas supply comes from LNG, which is projected to increase to 75 percent by 2030. This will further heighten uncertainty in energy security. However, despite this looming crisis, all charges are being increased unreasonably.
In 2023, after gaining the authority to set price rates, the previous government increased gas prices manyfold—including for production, transmission, and distribution charges. The charges for Petrobangla and Rupantarita Prakritik Gas Company Limited were also increased unnecessary. The gas price was raised for large, medium, small, and cottage industries as well.
For captive power, the price was increased by 97 percent, and for electricity, it was raised by 209 percent. The current government raised the price of gas used in industrial and captive power generation too. This indicates that the previous government not only turned the country into a power and energy import market but also moved towards turning it into an import market for industrial products.
Now the ministry and the BERC seem to be doing the same. In the 2022 public hearing, it was revealed that 65 percent of the Gas Development Fund remained unutilised, and 35 percent of the fund was spent on paying foreign contractors. National capacity development was not prioritised.
The previous government, with the support of the ministry and BERC, strategically created the groundwork for increased LNG imports. Looks like the current government is moving towards the same direction. The previous government initiated large-scale megaprojects for solar power development through private sector investments without competition.
According to the Power Purchase Agreements (PPAs), the electricity price for these projects was around Tk 14 per unit, even though solar power could be produced for less than Tk 4.5 per unit. The current government has cancelled these initiatives and called for competitive investments instead.
However, due to the lack of capacity of the Power Division, there is uncertainty about electricity price decline to a fair and reasonable level. To develop this sector, it is necessary to enhance and empower Sustainable and Renewable Energy Development Authority (SREDA) to ensure stakeholder participation under BERC, and limit the involvement of the Power Division. Additionally, a bottom-up approach should be adopted to promote this sector as a small and cottage industry, encouraging the creation of domestic entrepreneurs.
Due to the Electricity and Energy Speedy Supply (Special Provisions) Act, 2010, which allowed non-competitive investments, the development of the power and energy sector led to increased predatory costs. In 2023, an amendment to Section 34 of the Bangladesh Energy Regulatory Commission Act, 2003 transferred the power and authority to set all energy tariffs to the ministry stripping BERC of its regulatory power. As a result, the ministry has frequently raised energy tariffs, leading to an unbearable increase in the cost of living for the people and severe disruptions to national energy security.
This has ultimately jeopardised the fundamental rights of citizens. The approval of the recent price hike proposal by the ministry and its acceptance by BERC demonstrate that there has been no improvement in the situation. The current government repealed the Special Provisions Act, 2010, as well as Section 34A of the BERC Act.
However, the provision that states, "Until the commission formulates regulations, the government may, by notification in the official gazette, determine, re-determine, or adjust tariffs," is yet to be repealed. The ministry thus has continued to set the tariff of liquid fuels. Sections 2(b) and 2(c) were added in the ordinance, effectively granting immunity to the wrongful and criminal activities carried out under the previous law.
This betrayed the people, making them victims of a new cycle of exploitation. Energy security cannot be guaranteed unless electricity and primary energy are made accessible at prices within consumers' purchasing power. This necessitates a comprehensive reform of the energy sector, which must be carried out by BERC with the participation and empowerment of stakeholders.
To achieve this, the Ministry of Power, Energy, and Mineral Resources must be rendered inactive. During the hearing, concerns were raised that the public appeal should not escalate into a mass movement. The chief adviser acknowledged that the government has provided an opportunity, and people should find solutions to their problems.
Consequently, consumers demand that—(a) The proposal to increase the gas tariff for industrial and captive power use by 75.72 percent, as presented in the hearing, must be dismissed immediately. (b) All tariff-related orders issued by the Ministry of Power, Energy, and Mineral Resources under Section 34A of the amended BERC Act must be revoked.
Additionally, liquid fuel prices should be determined solely through public hearings conducted by BERC. (c) The total amount of predatory costs incorporated into electricity and primary energy pricing under the previous government must be identified. Existing tariffs must then be adjusted by removing these unjustified and predatory costs and lowering government revenue, ensuring a fair price for all consumers.
(d) A tribunal, led by a retired Supreme Court judge, must be formed to bring energy criminals to justice and ensure accountability. (e) The BERC Act must be reformed to establish a legal framework that ensures fair energy distribution and protects consumers from predatory practices. (f) To ensure affordable access to electricity and primary energy, the sector must undergo structural reform under a BERC-supervised commission comprising stakeholder representatives.
M. Shamsul Alam is energy adviser at the Consumers Association of Bangladesh (CAB), and professor of electrical and electronic engineering at Daffodil University. Views expressed in this article are the author's own.
Follow The Daily Star Opinion on Facebook for the latest opinions, commentaries, and analyses by experts and professionals. To contribute your article or letter to The Daily Star Opinion, see our guidelines for submission . Consumers Association of Bangladesh (CAB) rejects Bangladesh Energy Regulatory Commission (BERC)'s proposal to increase gas prices for industrial and captive power generation, which the Ministry of Power, Energy and Mineral Resources has approved.
Consumers protested and made their demands known during the public hearing on February 26, 2025. According to the price hike proposal, if the gas price for industrial and captive power increases by Tk 75.72, the projected additional annual revenue would be around Tk 3,241 crore, assuming an annual gas supply of 28,224 million cubic metres.
Additionally, the system loss in gas distribution and transmission is 13.53 percent, whereas BERC reports it as only 1.12 percent.
The remaining losses result from waste and theft. If these were adjusted, the current pricing model would lead to Tk 10,870 crore in savings. The data shows that merely ensuring fair and rational VAT and dealing with system loss would prevent Tk 14,418 crore in expenses annually.
However, instead of addressing the real system loss and predatory costs in gas supply, the Ministry of Power, Energy and Mineral Resources approved the price hike proposal, and BERC endorsed it. As a result, both entities stand accused of compromising consumer interests and rights, depriving consumers from fair energy pricing. Moreover, the total gas supply in 2022-23, 2023-24, and 2024-25 was 28,640, 28,037, and 28,224 (estimated) million cubic metres, respectively.
Domestic gas supply during these years was 22,651, 21,082, and 20,067 (estimated) million cubic metres, respectively. This gradual decline in gas supply in the country intensifies the energy crisis. Currently, 25 percent of the gas supply comes from LNG, which is projected to increase to 75 percent by 2030.
This will further heighten uncertainty in energy security. However, despite this looming crisis, all charges are being increased unreasonably. In 2023, after gaining the authority to set price rates, the previous government increased gas prices manyfold—including for production, transmission, and distribution charges.
The charges for Petrobangla and Rupantarita Prakritik Gas Company Limited were also increased unnecessary. The gas price was raised for large, medium, small, and cottage industries as well. For captive power, the price was increased by 97 percent, and for electricity, it was raised by 209 percent.
The current government raised the price of gas used in industrial and captive power generation too. This indicates that the previous government not only turned the country into a power and energy import market but also moved towards turning it into an import market for industrial products. Now the ministry and the BERC seem to be doing the same.
In the 2022 public hearing, it was revealed that 65 percent of the Gas Development Fund remained unutilised, and 35 percent of the fund was spent on paying foreign contractors. National capacity development was not prioritised. The previous government, with the support of the ministry and BERC, strategically created the groundwork for increased LNG imports.
Looks like the current government is moving towards the same direction. The previous government initiated large-scale megaprojects for solar power development through private sector investments without competition. According to the Power Purchase Agreements (PPAs), the electricity price for these projects was around Tk 14 per unit, even though solar power could be produced for less than Tk 4.
5 per unit. The current government has cancelled these initiatives and called for competitive investments instead. However, due to the lack of capacity of the Power Division, there is uncertainty about electricity price decline to a fair and reasonable level.
To develop this sector, it is necessary to enhance and empower Sustainable and Renewable Energy Development Authority (SREDA) to ensure stakeholder participation under BERC, and limit the involvement of the Power Division. Additionally, a bottom-up approach should be adopted to promote this sector as a small and cottage industry, encouraging the creation of domestic entrepreneurs. Due to the Electricity and Energy Speedy Supply (Special Provisions) Act, 2010, which allowed non-competitive investments, the development of the power and energy sector led to increased predatory costs.
In 2023, an amendment to Section 34 of the Bangladesh Energy Regulatory Commission Act, 2003 transferred the power and authority to set all energy tariffs to the ministry stripping BERC of its regulatory power. As a result, the ministry has frequently raised energy tariffs, leading to an unbearable increase in the cost of living for the people and severe disruptions to national energy security. This has ultimately jeopardised the fundamental rights of citizens.
The approval of the recent price hike proposal by the ministry and its acceptance by BERC demonstrate that there has been no improvement in the situation. The current government repealed the Special Provisions Act, 2010, as well as Section 34A of the BERC Act. However, the provision that states, "Until the commission formulates regulations, the government may, by notification in the official gazette, determine, re-determine, or adjust tariffs," is yet to be repealed.
The ministry thus has continued to set the tariff of liquid fuels. Sections 2(b) and 2(c) were added in the ordinance, effectively granting immunity to the wrongful and criminal activities carried out under the previous law. This betrayed the people, making them victims of a new cycle of exploitation.
Energy security cannot be guaranteed unless electricity and primary energy are made accessible at prices within consumers' purchasing power. This necessitates a comprehensive reform of the energy sector, which must be carried out by BERC with the participation and empowerment of stakeholders. To achieve this, the Ministry of Power, Energy, and Mineral Resources must be rendered inactive.
During the hearing, concerns were raised that the public appeal should not escalate into a mass movement. The chief adviser acknowledged that the government has provided an opportunity, and people should find solutions to their problems. Consequently, consumers demand that—(a) The proposal to increase the gas tariff for industrial and captive power use by 75.
72 percent, as presented in the hearing, must be dismissed immediately. (b) All tariff-related orders issued by the Ministry of Power, Energy, and Mineral Resources under Section 34A of the amended BERC Act must be revoked. Additionally, liquid fuel prices should be determined solely through public hearings conducted by BERC.
(c) The total amount of predatory costs incorporated into electricity and primary energy pricing under the previous government must be identified. Existing tariffs must then be adjusted by removing these unjustified and predatory costs and lowering government revenue, ensuring a fair price for all consumers. (d) A tribunal, led by a retired Supreme Court judge, must be formed to bring energy criminals to justice and ensure accountability.
(e) The BERC Act must be reformed to establish a legal framework that ensures fair energy distribution and protects consumers from predatory practices. (f) To ensure affordable access to electricity and primary energy, the sector must undergo structural reform under a BERC-supervised commission comprising stakeholder representatives. M.
Shamsul Alam is energy adviser at the Consumers Association of Bangladesh (CAB), and professor of electrical and electronic engineering at Daffodil University. Views expressed in this article are the author's own. Follow The Daily Star Opinion on Facebook for the latest opinions, commentaries, and analyses by experts and professionals.
To contribute your article or letter to The Daily Star Opinion, see our guidelines for submission ..
