The subsidy for LNG in Bangladesh is set to rise sharply in the fiscal year 2024-25, increasing by 27.27% to 7,000 crore taka from 5,500 crore taka in the current fiscal year. This subsidy supports LNG imports, crucial for meeting the country’s growing gas demand despite rising international prices. The budget allocation for LNG expenses in 2024-25 will total 17,300 crore taka, up from 11,500 crore taka allocated this year. The plan includes importing 24 to 26 LNG cargoes to ensure uninterrupted supply, critical for industrial needs. Experts emphasize the necessity to enhance domestic gas production to reduce reliance on costly LNG imports, which strain the economy. Rising Asian demand is driving global LNG prices higher, complicating Bangladesh’s subsidy burden. Government data reveals substantial past subsidies for LNG imports since 2018-19, totaling 26,215 crore taka, highlighting the ongoing financial support needed for energy security amidst economic pressures.
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