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[🇧🇩] Energy Security of Bangladesh

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[🇧🇩] Energy Security of Bangladesh
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A smarter solar strategy essential for Bangladesh’s clean energy transition

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'While rooftop solar continues to grow, Bangladesh must explore more effective alternatives to increase the share of renewables in its overall energy mix.' FILE PHOTO: REUTERS

In recent years, Bangladesh has made notable progress in renewable energy production. The Sustainable and Renewable Energy Development Authority (SREDA) estimates that five percent of the country's total generation capacity now comes from renewables. Solar energy is the primary contributor, accounting for 82 percent of renewable generation. Rooftop solar is steadily expanding, with 4,267 net-metered systems installed nationwide to date. Large-scale solar parks are also playing an increasingly important role.

Despite these advances, Bangladesh's solar potential remains largely untapped. Experts estimate this potential at 50,174 MW—sufficient to meet around 80 percent of the country's projected energy demand of 60,000 MW by 2041. The urgency to harness this potential has been heightened by the recent energy crisis. Responding to these challenges, the interim government announced ambitious targets in its Renewable Energy Policy of June 2025, aiming to generate 20 percent of energy from renewables by 2030 and 30 percent by 2040.

While rooftop solar continues to grow, Bangladesh must explore more effective alternatives to increase the share of renewables in its overall energy mix. Advances in solar, storage, and smart-grid technologies offer opportunities to leapfrog traditional power systems. One promising innovation is perovskite solar cells, a new class of photovoltaic (PV) material capable of converting up to 50 percent more sunlight into electricity than conventional silicon panels. This makes them particularly suitable for low-light conditions, including Bangladesh's monsoon seasons. Lightweight and adaptable, these cells can be printed or spray-coated, enabling applications such as "solar paint" on roofs or walls. Unlike traditional silicon PV, perovskites can be processed at near room temperature, significantly reducing manufacturing energy use and costs. Such high-efficiency, low-cost PV technologies could allow Bangladesh to expand capacity within limited rooftop and urban spaces while lowering adoption costs for households, industries, and SMEs.

Alongside perovskites, emerging technologies such as thin-film and organic photovoltaics (OPV) offer distinct advantages. They are lightweight, flexible, and inexpensive to manufacture. Thin-film cells can be produced on rolls or plastic substrates, making them suitable for curved roofs, portable devices, and building-integrated solar windows. In Bangladesh, thin-film modules could be installed on lightweight rooftops and building exteriors where heavier panels are impractical, while OPV films could supply power to village shops and small electronic devices.

Solar power generation typically requires more land than conventional power plants. As Bangladesh faces acute land constraints, floating photovoltaic (FPV) systems provide a way forward by enabling solar deployment on reservoirs, lakes, and ponds. Water acts as a natural coolant, improving panel efficiency and durability, while also reducing evaporation and algae growth. Bangladesh has already installed an FPV plant in Bagerhat, and this modular, scalable technology could rapidly add capacity without displacing farmers or occupying scarce land.

Agrivoltaics offers another solution by integrating solar panels and agriculture on the same land. Elevated PV arrays create dual-use fields where crops grow under partial shade while panels generate electricity. Studies show that this approach can increase overall land productivity, reduce water requirements, and raise combined crop and energy yields by 35 to 73 percent. In Bangladesh, trials with BRRI-33 rice indicate that intermittent shading does not reduce yields and may even improve plant growth, soil conditions, and water retention. A 100 MW semi-agrivoltaics project is already planned in Jamalpur, where green chillies, turmeric, and ginger will be cultivated beneath solar panels.

Beyond photovoltaic systems, solar thermal technologies also offer potential for renewable power generation. Thermoelectric generators, for example, can convert solar heat directly into electricity. Other solar thermal options, such as concentrating solar power (CSP), use mirrors or lenses to heat fluids that drive turbines. Unlike PV systems, CSP can store energy as heat—often using molten salt—and deliver electricity on demand. This feature is particularly valuable as it allows energy supply during periods of low sunlight. Feasibility studies, especially in the Dinajpur region, have identified significant potential for CSP deployment.

In addition to CSP, several storage technologies are being developed to support photovoltaic power. Flow batteries store energy in liquid electrolytes held in external tanks, separating power capacity from storage volume. They offer long lifespans, often exceeding tens of thousands of cycles, and allow full depth-of-discharge. Although their energy density is lower than that of lithium-ion batteries, flow batteries are well-suited to large-scale, multi-hour grid storage and can smooth daily or weekly fluctuations in renewable generation with minimal degradation. Bangladesh currently has no grid-scale flow battery installations, but declining costs could make them viable for island grids or long-duration solar storage.

Among long-duration storage solutions, pumped-storage hydropower (PSH) is the most established. It uses surplus electricity to pump water to an elevated reservoir, releasing it later to generate power during peak demand. PSH offers large capacity at a relatively low cost per kilowatt-hour and can operate reliably for decades. Although Bangladesh has no PSH plants at present, the 2016 Power System Master Plan has set a target for the first project by 2030. Locations such as Kaptai, where an existing hydroelectric dam operates, or reservoirs in the hilly northeast could provide gigawatt-hour-scale storage.

Modernising the power grid is essential to integrating renewable energy effectively. Smart grids use digital sensors, automated controls, and real-time data to optimise electricity flows and manage intermittent supply. In Bangladesh, US-funded studies have launched pilot projects in Dhaka and at the national transmission level to improve grid efficiency and flexibility. The 2025 net-metering reforms mark another important step. Under the revised policy, households and businesses can use rooftop solar for self-consumption and export excess electricity to the grid. Net exporters receive energy credits, which can be used to purchase electricity later. These measures encourage decentralised generation. When combined with smart-grid investments, these measures will help Bangladesh manage its expanding renewable capacity more efficiently.

Nafis Mubarrat is programme associate at South Asian Network on Economic Modelling (SANEM). He can be reached at nafis.sanem@gmail.com.
Sheikh Tausif Ahmed is research associate at SANEM.​
 
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Rationing fuel in govt recipe
Industry first in gas supply to fuel economic growth

Petrobangla to ramp up LNG import in new year

M Azizur Rahman
Published :
Dec 27, 2025 23:37
Updated :
Dec 27, 2025 23:37

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Industrial consumers will get top priority in gas supply as the government prepares such a fuel-feeding recipe aimed at fuelling economic growth, now largely subdued following political upheavals, sources say.

"Industry will be on top of our priority and we want that the industrial consumers will get as much gas as possible next year to run their industries," state-run Petrobangla Chairman Md Rezanur Rahman told The Financial Express Saturday.

As part of this plan, Petrobangla will be importing increased volumes of liquefied natural gas (LNG) from global suppliers next year," he said.

In 2026--the year close by now-the government corporation will import some 115 LNG cargoes, 5.50-percent higher than current year's imports.

Petrobangla now imports some 109 LNG cargoes from the international market under its set arrangements, he mentions.

"We don't want industrial output be hindered due to natural gas crisis," he says, adding that Petrobangla will utilise current year's experience in the coming year to ensure sufficient natural gas supplies to industries.

"We have month-wise data over demand for natural gas and supply to industries."

Currently, he says, they are providing natural gas to industries to the extreme level of their capacity.

Fertiliser factories are also getting increased volumes of gas, says Mr Rahman.

In the coming year, industrial consumers will get sufficient more gas even when the demand for natural gas for other consumers will increase, he assures.

In the current year, natural gas supply to industries increased by 21 per cent during the first four months until April 2025 compared to the same period of the previous year, 2024, according to official data of the Ministry of Power, Energy and Mineral Resources (MPEMR).

Average gas supply to industries during the first four months until April this year was 997 million cubic feet per day (mmcfd), compared to 823 mmcfd during the same period of the previous year, MPEMR data showed.

Petrobangla has raised gas supply to industries by around 150 million cubic feet per day (mmcfd) since late May following a government decision to import six additional LNG cargos.

The agency reduced gas allocations for gas-fired power plants to 1,050mmcfd from existing 1,200mmcfd to ramp up the fuel feeding to industries by 150mmcfd.

Some 100 mmcfd of additional gas was supplied to industries from additional LNG imports and some 150 mmcfd of gas was diverted to industries to ensure around 250mmcfd additional gas in total for industries from June to October before the advent of winter, said a senior MPEMR official.

The government is spending an additional Tk 110 billion to ensure enhanced gas supply to the industry this year.

"The government will have to count subsidy worth around Tk 35 per cubic meter for importing the additional LNG cargoes for industries," the official adds.

Sources have said that currently the government is providing new gas connections as an unofficial moratorium in previous years amid gas crisis is lifted. Rampant illegal gas connections across the country during the previous Awami League government over the past 16 years had led to the ceasing of new gas connections to industries 'unofficially,' industry insiders say.

"A strong syndicate led by the previous government high-ups, local public representatives, top officials of gas-marketing and -distribution companies and contractors provided scores of illegal connections depriving new industries where the necessity of such connections was vital," says one of the sources.

Currently, new piped gas connections to CNG (compressed natural gas)-filling stations, households and commercial consumers are stopped.

The commercial consumers include restaurants, residential hotels and guest houses, private hospitals, clinics, laboratories, educational institutions, community centres, community clubs, convention centres, snack -and bakery-item makers.

Traditional glass, chocolate, 'chanachur', vermicelli, biscuit, soap, ceramic, medicine, colour, 'agor-ator' distilled water, tannery, ice and ice-cream, and salt makers, who use hand-operated tools to manufacture their products, also belong to the commercial-consumer group.

New gas connections to hospitals, educational institutions and jails, however, continued.

New gas connections to captive power plants are discouraged, considering the increase in the country's overall electricity generation.

Country's overall natural-gas scarcity prompted Petrobangla to ration new connections to industries, fertiliser factories and power plants since June 2009.​
 
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BPC profit surges on falling global oil prices
Downward revisions needed to push down inflation: experts
Shakahwat Hossain 28 December, 2025, 00:40

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Profits by the state-owned Bangladesh Petroleum Corporation have continued to increase on the back of falling prices of petroleum fuel oils on the global market.

But the consumers have been deprived of the falling import prices as the BPC, the lone marketing entity of fuel oils, has kept the domestic prices of the petroleum items at the elevated levels.

Energy Division officials revealed that the BPC had made a net profit of Tk 4,216 crore in the 2024- 25 financial year when the crude oil sold at $70 per barrel on average.

The BPC’s profit in FY25 grew more than 9 per cent over the net profit of Tk 3,943 crore in FY24, taking its overall profits to around Tk 64,000 crore in the past 11 years.

Energy officials said that the BPC’s average monthly profit of Tk 350 crore in FY25 grew further to around TK 400 crore in the first five months of the current FY26 as the average prices of crude oils had dropped below $60 per barrel.

On December 1, 2025, the BPC increased the prices of all categories of fuel by Tk 2 per litre.

Diesel is now selling at Tk 104, octane at Tk 124, petrol at Tk 120 and kerosene at Tk 116.

The previous price of each litre of diesel at Tk 102, octane at Tk 122, petrol at Tk 118 and kerosene at Tk 114 -- fixed on June 1 -- was kept unchanged by the BPC in its periodical review made in August 1, 2025 in line with the automatic price adjustment formula.

Introduced in February, 2024 to appease the International Monetary Fund, the price adjustment formula has blocked the scope for public hearing for price hike or decrease of fuel oils.

Consumer Association of Bangladesh energy adviser M Shamsul Alam criticised the present interim government for treating the BPC as a profit-making entity like the previous autocratic Awami League regime used to do.

Extreme unfairness has been going on in fixing the fuel oil prices, he said.

According to the Commodity Markets Outlook released by the World Bank in October 2025, the global oil glut has expanded significantly in 2025 and is expected to rise next year to 65 per cent above the most recent high -- in 2020.

Brent crude oil prices are forecast to fall from an average of $68 in 2025 to $60 in 2026 — a five-year low while the overall energy prices are forecast to fall by 12 per cent in 2025 and a further 10 per cent in 2026, added the WB report.

Policy Exchange Bangladesh chair M Masrur Reaz said that the interim government had failed to uphold its commitments to reflect international market prices in the domestic fuel oil prices.

The government should review the prices with no major price-hike forecast of petroleum products in the next year, he said.

Downward revisions of fuel oils will bring positive impacts across the board, he observed.

Majority people who have been struggling to maintain their daily expenditures amid high inflation over the past three years will get relief with the downward adjustment of fuel oil items, he further said.

On August 2022, a record 50 per cent hike in the prices of fuel oil items pushed up inflation in country.

Former World Bank Dhaka office chief economist Zahid Hussain said that the pressure on the fiscal side was always slim when prices of crude petroleum oils stay below $60 dollar per barrel.​
 
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How our electric grid fosters inequality

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This state-designed monopoly logic feeds food inflation by pushing energy volatility from the grid into food prices. PHOTO: FREEPIK
At 2pm on a sweltering April day in a small workshop in rural Mymensingh, a welding machine goes silent. It was not because there was no electricity connection, but because the power had vanished again. At that exact moment, in a corporate high-rise in Dhaka, an air conditioner hums uninterrupted.

This split-screen reality exposes a structural reality: what Bangladesh has built is not a single power system serving a single economy, but a divided one.

On one side sits the state economy: an electricity regime engineered around megawatts contracted, capacity payments guaranteed, and fiscal stability preserved. It reliably powers government narratives, corporate enclaves, and politically insulated industry. Here, energy risk is underwritten by sovereign guarantees and absorbed by the public purse.

On the other side sits the bottom-of-the-pyramid economy, spanning agriculture, agri-processing, cottage industries, and small manufacturing. Here, electricity is not a convenience but a precondition for survival. The grid reaches farms, mills, cold storages, and workshops alike, but reliability does not. Risk here is not insured; it is absorbed by farmers through failed irrigation cycles, by poultry owners through heat losses, by millers through spoiled grain, and ultimately by consumers through food inflation.

For the millions of enterprises in this second economy, the celebrated "100 percent electrification" milestone is a vanity metric. Official data shows access exceeding 99 percent, yet productivity remains hostage to reliability. During the heatwaves of 2024, while urban centres faced manageable load shedding, rural feeder lines sustaining the productive base faced outages lasting six to seven hours a day. Small manufacturers were forced to burn diesel at over Tk 106 per litre just to meet deadlines—a massive cost increase over grid tariffs.

This instability bleeds directly into agriculture. Unreliable power forces farmers into gruelling nocturnal irrigation cycles and exposes poultry operations to catastrophic heat losses; industry bodies reported poultry sector losses running into Tk 16,000 crore over a single month. Cold storage operators are pushed onto diesel simply to prevent crops from rotting.

This state-designed monopoly logic feeds food inflation by pushing energy volatility from the grid into food prices. When energy risk is forced onto producers, it results in higher food prices, lower wages, and lost jobs. At the end of this value chain sit households: those that cannot absorb the shock go without a meal or two.

As a cottage industry's load approaches and crosses roughly the 50-kilowatt threshold, utility rules typically require a shift to high-tension supply, often necessitating the installation of a private 11 kV/0.4 kV substation, an investment that can cost Tk 15 to 25 lakh. Connection is permitted, but scaling is disincentivised.

Only once this trap is visible does the architecture behind it come into focus. For more than a decade, under the indemnity of the Speedy Supply of Power and Energy (Special Provision) Act, procurement rules prioritised speed over scrutiny, allowing capacity to be contracted without competitive discipline.

The fiscal consequences are now clear. In the revised FY 2024-25 budget, Tk 62,000 crore was allocated to power-sector subsidies. Recent analysis suggests that in FY 2023-2024, nearly 81 percent of this allocation, to the tune of Tk 32,000 crore, was absorbed by capacity charges. These are payments to plants regardless of whether electricity is actually produced.

This stark division is not a technical inevitability; it is a fiscal choice. The path forward requires treating the bottom-of-the-pyramid economy not as a charity case, but as the engine of growth. The updated Renewable Energy Policy 2025 explicitly recognises peer-to-peer electricity trading. If operationalised, a cluster of rice mills in Bogura or a weaving village in Sirajganj could generate, store, and trade solar power through a swarm-grid model. Decentralisation here is not ideological; it is about yield stability and food system resilience.

A quieter reform lies in finance. Every month, millions of farmers and rural entrepreneurs pay electricity bills. By integrating smart-meter usage with digital credit scoring, a farmer's steady irrigation history or a processor's consistent cold storage demand can become bankable proof of productivity. Finance can then follow performance, not paperwork—transforming energy from a recurring expense into financial infrastructure.

As long as the power sector protects the state economy while extracting from agriculture and small business, food inflation and broad-based unemployment will remain structural features of the economy. This is not a future risk; it is the present cost of a system that keeps capital comfortable and production expendable.

As such, the lights will stay on in the high-rises. The darkness has already been outsourced to the fields and workshops below.

Saba El Kabir is a development practitioner and founder of Cultivera Limited.​
 
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Is the LNG pathway sustainable for Bangladesh?
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FILE VISUAL: ANWAR SOHEL

The combination of soaring natural gas demand and plummeting domestic production has pushed the Bangladesh government to diversify its energy sources. In the past, various plans, including the Integrated Energy and Power Master Plan 2023, have attempted to address this concern, but they have driven a shift towards imported liquefied natural gas (LNG) instead. As a result, the LNG pathway, pursued as a fuel diversification strategy without enough investment in domestic gas exploration, has become an economic burden for the country.


With surging LNG imports, the government has drastically increased gas tariffs, making industrial production expensive. Yet, the government pays a hefty annual subsidy on account of LNG imports. Unless Bangladesh streamlines its energy pathway, the reliance on imported LNG may further expose the vulnerability of its energy system, leading to a recurring subsidy problem.

Bangladesh's LNG imports surged by 21.7 percent and 13.86 percent in FY2023–24 and FY2024-25, respectively, following a 15.45 percent reduction in FY2022-23. The country's LNG imports declined in FY2022–23 due to elevated spot market prices and tight fiscal conditions. Imports, however, rebounded in the subsequent years because of affordable LNG prices.

While the contribution of expensive LNG to total gas consumption stands at 28.8 percent, the government is gradually passing the additional costs on to different sectors, excluding grid-based power generation. Between February 2023 and April 2025, the government raised gas tariffs for industrial production twice and captive power generation thrice. The gas price for industrial production increased from Tk 16/ cubic metre (m3) ($0.13/m3) to Tk 40/m3 ($0.33/m3), while the gas price for captive power generation soared to Tk 42/m3 ($0.33/m3) from the same level.

On a ballpark estimate, industries, excluding the fertiliser sector, incurred additional costs of approximately Tk 4,560 crore ($0.37 billion) in FY2023–24 compared with FY2022–23 due to gas price hikes (calculated using gas consumption and tariffs for the respective years). This occurred despite a 5.9 percent year-on-year decline in gas supply to the sector.

Likewise, the government received additional payments of approximately Tk 3,160 crore ($0.26 billion) from gas-fired captive power generators during the same period, driven by higher tariffs. Notably, gas supply to captive power generation declined by 6.5 percent.

Bangladesh's average gas supply in FY2024-25 was 2,679 million cubic feet per day (MMcfd)—derived from the annual consumption of 978 billion cubic feet (Bcf)—against a demand of around 4,000MMcfd. This implies a gas supply deficit of more than 1,300MMcfd. With domestic production declining at an average rate of 4.64 percent per annum since FY2018–19, this demand-supply gap may widen further, potentially prompting the government to enhance regasification capacity and increase LNG imports.

While the government has set a goal of adding local gas of 648MMcfd and 1,500MMcfd to the grid by 2025 and 2028, respectively, it should keep sufficient funds for exploration. The allocation to the energy sector as part of the annual development programme stands at a paltry Tk 2,086 crore ($0.17 billion), which is inadequate to achieve this year's goal. Available reports suggest that the government's initiatives may add only 143MMcfd of gas to the grid in 2026.

The government is also planning to float an international tender to explore onshore gas to ramp up local production. In the event of moderate success, if Bangladesh connects 1,000MMcfd of new gas, including the announced 143MMcfd, to the grid by FY2029–30, domestic gas production will reach 2,500MMcfd (assuming existing gas supply continues to decline at the current rate of 4.64 percent per annum). Therefore, even to meet the current demand of 4,000MMcfd in FY2029–30, the country will need to import 1,500MMcfd of LNG. The annual LNG import will then rise to 547Bcf, making an annual payment obligation of more than $5 billion in FY2029–30 (taking $10/MMBtu of LNG, based on Bangladesh's long-term contracts and recent spot-market purchases).

In a less favourable scenario of limited local discovery and high price volatility, Bangladesh could pay as much as $8.5 billion in FY2029-30 on account of LNG imports (assuming the government adds 500MMcfd of domestic gas to the grid, existing gas supply continues to fall at the current rate of 4.64 percent per annum, and the average LNG price reaches $12/MMBtu). Alternatively, the unaffordability of LNG and fiscal constraints could worsen the energy supply shortfall, thereby stifling economic activities.

Despite massive gas price hikes in the last two-and-a-half years, the government allocated a subsidy of Tk 9,000 crore ($0.74 billion) for LNG imports in its FY2025–26 budget. Low gas tariff for grid-based power plants is one of the key reasons behind this hefty subsidy burden. For instance, the government charges power plants at Tk 14.75/m3 ($0.12/m3), which means it must provide a subsidy of around Tk 29.85/m3 ($0.24/m3) if the LNG price is $10/MMBtu.

High LNG dependence in the near future may prompt the government to raise gas tariffs for grid-based power plants, affecting the Bangladesh Power Development Board (BPDB). With rising generation costs, BPDB's revenue shortfall is likely to widen. The government might pivot to adjust power tariffs to provide BPDB some relief.

As Bangladesh is yet to lock in a very high LNG dependence, the best course of action for the country is to design an alternative energy pathway, focusing on utilising renewable energy and local gas. There are two concrete examples. In 2020, Vietnam installed more than nine gigawatts (GW) of rooftop solar capacity, backed by a guaranteed feed-in-tariff. Pakistan imported solar panels and battery packs of 17GW and 1.25 gigawatt-hours (GWh) capacities in 2024, leading to a solar boom amid the country's energy supply crunch and unaffordable power tariffs. This surge in solar power generation resulted in a subdued demand for LNG in Pakistan.

The key to Bangladesh's success in enhancing energy system resilience is to expand renewable energy at a faster rate by focusing on decentralised systems like rooftop solar. Meanwhile, the government can allocate sufficient budgetary resources to explore local gas and strengthen energy efficiency to wean itself off its LNG reliance.

Shafiqul Alam is lead energy analyst for Bangladesh at Institute for Energy Economics and Financial Analysis (IEEFA).​
 
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Bangladesh's energy security faces challenges from heavy reliance on imported fossil fuels, aging infrastructure, and high costs, leading to recent crises with load shedding and price hikes, despite improvements in power access and some diversification efforts. Key strategies involve increasing LNG imports, boosting domestic production (especially gas), improving grid efficiency, managing volatile international fuel markets, and investing in renewables to balance affordability, availability, and sustainability.

Key Challenges
  • Import Dependence: Over-reliance on imported natural gas, coal, and oil makes Bangladesh vulnerable to global price volatility and supply disruptions.​
  • Infrastructure Gaps: Aging grid infrastructure, high system losses, and inefficient power generation strains the system.​
  • Affordability & Access: Rising tariffs impact low-income groups, while ensuring equitable access remains a challenge, notes ScienceDirect.com.​
  • Demand Growth: Rapid urbanization and industrialization outpace supply, intensifying the crisis, according to CPD.org.bd.​
Current Strategies & Initiatives
  • LNG Imports: The World Bank supports projects like the Energy Sector Security Enhancement Project to secure LNG imports for Petrobangla.​
  • Domestic Production: Efforts to enhance domestic natural gas supply from fields like Bibiyana are crucial.​
  • Renewable Energy: Developing solar, wind, and other renewables offers a path to sustainability, though investment is needed.​
  • Grid & Efficiency: Projects focus on reducing system losses, improving vehicle emissions, and modernizing infrastructure, notes World Bank Group.​
Future Directions
  • Diversification: Moving beyond fossil fuels to a balanced mix of renewables, LNG, and efficient domestic sources is essential.​
  • Policy & Governance: Implementing stable policies, improving energy management, and attracting private investment through mechanisms like green bonds are vital.​
  • Energy Efficiency: Promoting conservation and reducing waste can significantly ease demand pressure, says The Daily Star.​
In essence, Bangladesh aims to transition from a vulnerable, import-heavy system to a more resilient, diverse, and sustainable energy framework, though achieving true energy security requires addressing its affordability and access dimensions alongside supply.
 
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LPG cylinder-price hike and BERC inaction
Neil Ray

Published :
Jan 05, 2026 00:42
Updated :
Jan 05, 2026 00:42

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The Bangladesh Energy Regulatory Commission (BERC) has fixed the price of a 12-kg LPG (liquid petroleum gas) cylinder at Tk1,253 but its retail price has now crossed the Tk 2,000 mark. However, according to a report carried in a leading contemporary, the unilateral price hike is not uniform. The price varies from one area to another and even from one retail shop to another. If a LPG cylinder is sold at Tk1,500 somewhere, the selling price is Tk1,800 elsewhere. This means the regulatory system has broken down. The retailers are forcing customers to pay as much as they can, citing supply shortage of gas cylinders. Granted that there is an import crunch of the LPG gas because of blacklisting of 29 ships responsible for carrying this particular fuel. Thus the import of LPG plummeted from the usual 130,000-140,000 tonnes to only 90,000 tonnes last month.


This is no reason for an instant gas crisis. The LPG Operators Association of Bangladesh (LOAB), as its vice-president claims, has not raised the price of gas cylinders even though the import is 40 per cent lower in December last. So the price spiral appears to be orchestrated by the retailers on the pretext of supply shortage. Every time there is a lame excuse for hiking price of essentials. Why cannot the rule based on the moral standpoint prevail to the effect that as long as the authorities do not raise the prices, the last item would be sold at the previous rate? But any hint of supply crunch prompts a chain reaction of price escalation in this country. Involved here is a sensitive item like gas cylinders that are mostly used for cooking at the domestic level.

If the price of this fuel is atrociously raised, its impact on families and the economy will be highly adverse. Since April, 2021, the BERC has been adjusting prices of LPG cylinders every month. The purpose is to be in line with the trend of international price of this fuel. The unavailability of ships for transhipment of gas may have temporarily disrupted the supply chain due to blacklisting of almost two and a half dozens of ships by the US administration. This can be overcome gradually but it could be worse if petroleum products in the international market marked a sharp increase. When that has not happened, this profit-mongering display at the domestic level is certainly unacceptable. Those who have triggered the process are violating the law of the land and, in fact, branding themselves as the enemies of the people. Then the LOAB has not helped the cause by drastically limiting supply of gas cylinders.

If a lower middle-class or poor family have to pay Tk 2,000 for this essential item for cooking, it is sure to prove too much for them. They have been reeling from lower income compared to unrelenting inflation. Import of LPG is likely to put the country to further tests in the coming days. Such dependence on imported fuel will threaten the country's development programmes if there is no alternative to it for overcoming supply disruptions for multifarious reasons. The country has to wean away from LPG import to domestic sources of energy, including green energy. This cannot be done overnight but the process should begin with right earnest in order to explore both onshore and offshore natural gas.

As for meeting the immediate crisis, a vigorous search for ships capable of carrying LPG from the Middle East or any other source to this country's shore should be launched right now. True, international shipping is guided by strict schedules. But this is abnormal time when the powerful nations, in defiance of the United Nations charters, attack a weak nation or subject it to capricious commercial restrictions. Why those 29 ships were blacklisted is again the result of hubris of the mighty. So the country has to initiate its own agenda for overcoming the shipment problem. But the interim government is better known for its inaction. Inertia and casual approach have no place in a world riven by fractious international relations and equation.​
 
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Energy adviser blames retailers and wholesale traders for high gas price

Staff Correspondent Dhaka
Published: 06 Jan 2026, 18: 47

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Fouzul Kabir Khan, adviser on power, energy and mineral resources File photo

Muhammad Fouzul Kabir Khan, adviser on power, energy and mineral resources, has blamed retail and wholesale traders for the recent unusual rise in liquefied petroleum gas (LPG) prices. He said the surge is temporary and will ease gradually.

He made the remarks in response to query while speaking to newspersons following a meeting of the government procurement advisory committee at the secretariat Tuesday.

At the consumer level, the price of private-sector LPG has risen by Tk 4.42 per kilogram. For this January, the price of a 12-kg cylinder has been set at Tk 1,306. Last month (December 2025), it was Tk 1,253. This means the price of 12-kg cylinder has increased by Tk 53. The price increased by Tk 38 last month.

The adviser on power, energy, and mineral resources said mobile courts are being conducted against businesses that have raised LPG prices abnormally. Measures are also being taken to reopen shops that remain closed.


When asked whether those involved in the price manipulation have been punished, the energy adviser said yes, in many cases they have been. The operations are being carried out by the district administration, the police, and the Directorate of Consumer Rights Protection.

The energy adviser said information on LPG price hikes is being provided by the Bangladesh Energy Regulatory Commission (BERC), adding, “We will see whether anyone at BERC is involved in this.”

Adviser Fouzul Kabir Khan said some vessels are under restrictions and added, "We are trying to address the shipping issues for the future."

On the household gas shortage, he said, “There is local gas production, and imports are also made. Neither is lacking. It should be remembered that in winter, gas pipelines face problems, and even overseas pipelines are affected. This causes issues in gas supply. The planned amount of LNG is being brought in.”​
 
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