Govt doubles gas price for Karnaphuli Fertiliser
The government increased the gas price, citing losses incurred from selling gas to Kafco below the purchase rate.
Karnaphuli Fertiliser Company (Kafco) will now be required to pay Tk30 per cubic meter to procure gas from the state-owned gas distribution company, Karnaphuli Gas Distribution Company Limited (KGDCL).
The Energy and Mineral Resources Division issued a gazette announcing the increase in gas prices for the multinational company on Monday.
Until May 2022, KGDCL had been supplying gas to Kafco at Tk12 per cubic foot, a rate lower than the government-set rate for industrial consumption, under a previous agreement. The government reviewed the agreement and increased the price to Tk14 per cubic foot in May of the same year, citing losses incurred from selling gas to Kafco below the purchase rate.
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Monday's gazette from the energy division stated if the fertiliser price in the international market increases by $20 per tonnne, the gas price for Kafco will go up by Tk1 per unit.
According to Kafco's monthly report, each cubic foot of gas was charged Tk17.13 in July. In the fiscal year 2022-23, KGDCL sold 42.49 crore cubic feet of gas to Kafco, valued at Tk1.92 crore.
