Gas Price Hike Will Threaten Bangladesh’s Industries & Increase Import Dependence
Businesses have raised alarms over the proposed gas price hike, warning that it could severely impact local industries and increase reliance on imports. Speaking at a seminar on energy affordability and industrial competitiveness, they cautioned that the move would escalate production costs, weaken investment and jeopardize economic stability. The event was organized by the Economic Reporters’ Forum (ERF) and Policy Exchange Bangladesh at InterContinental Dhaka.
M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, highlighted that doubling gas prices would make Bangladeshi industries uncompetitive, particularly in steel, cement and ceramics, forcing them to turn to imports. This shift would strain foreign reserves and increase non-performing loans (NPLs) as struggling businesses face financial distress. Rising energy costs could also deter foreign direct investment (FDI) and slow down local business expansion, he added.
Reaz called for rational energy pricing, greater investment in renewables and a strategy to stabilize the power grid to ensure long-term sustainability.
Anwar ul Alam Chowdhury, President of the Bangladesh Chamber of Industries, criticized the proposed 150% gas price increase for new industries and the 50% hike for expansion projects.
“Bangladesh’s industries were built on affordable gas. Now, rising energy costs, high bank interest rates, and excessive taxation are making it difficult for businesses to survive. The government must support existing industries before promoting new ones,” he urged.
Shawkat Aziz Russell, President of the Bangladesh Textile Mills Association, accused past administrations of mismanaging gas purchases, leading to the current crisis. He emphasized that industries, particularly textiles, would struggle to remain competitive under such pricing pressures.
Jalal Ahmed, Chairman of the Bangladesh Energy Regulatory Commission, acknowledged the severity of the crisis, attributing it to years of delayed price adjustments. He admitted that a sudden hike could place a significant financial burden on industries, suggesting that gradual adjustments should have been made earlier.
Meanwhile, lawyer Tanim Hussain Shawon argued that the proposal violates Section 6 of the Gas Law. He pointed out that while the government has categorized gas connections, it has not defined separate pricing mechanisms for new and existing investors, creating legal ambiguities.
Industry leaders urged policymakers to reconsider the gas price hike, warning that it could undermine industrial growth, increase reliance on imports and reduce Bangladesh’s global competitiveness. They called for a balanced energy pricing strategy that supports both sustainability and economic stability.
The session was presided over by Doulot Akter Mala, President of ERF.
