Bangladesh hikes gas tariffs to boost import infrastructure

By Garima Chitkara 2 September 2015 12:03 GMT
A rig offshore Bangladesh. The country’s local sources of gas are dwindling. (Seadrill) A rig offshore Bangladesh. The country’s local sources of gas are dwindling. (Seadrill)

A significant hike in gas tariffs implemented this week by the Bangladeshi government shows Dhaka is serious about addressing its lack of import infrastructure.

On 28 August the Bangladesh Energy Regulatory Commission increased power and gas tariffs by an average of 26.29%, with gas tariffs for captive (or private) power plants doubled to BDT 8.36 per cubic metre ($0.11/cm). The changes, which included a 2.93% increase for retail consumers, took effect on Tuesday.