The Ministry of Power, Energy, and Mineral Resources in Bangladesh has decided to suspend gas connections to government-run fertilizer factories under the Ministry of Industries due to a significant outstanding gas bill. The factories are reluctant to pay the higher gas price implemented in June 2022, which increased from Tk 4.45 to Tk 16 per cubic foot, a 260% increase. Despite assurances from the Bangladesh Energy Regulatory Commission (BERC) that the government would subsidize half the gas price, the Ministry of Industries claims the subsidy commitment has not been honored by the Ministry of Finance. To address the issue, the Energy Division is considering suspending gas supply to these factories until the bill is settled. An assessment of fertilizer demand and production disruption is underway to ensure a phased approach to any potential suspension.
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