Power, fertiliser plants' gas bill arrears to Petrobangla exceed Tk25,000cr
The power, energy, and mineral resources ministry, which oversees Petrobangla, is currently struggling to collect the massive amount of outstanding dues
As of January this year, gas bill arrears of power plants and fertiliser factories to six gas distribution companies under Petrobangla have exceeded Tk25,000 crore.
The power, energy, and mineral resources ministry, which oversees Petrobangla, is currently struggling to collect the massive amount of outstanding dues.
According to sources at Petrobangla, Titas Gas Transmission and Distribution Company has the highest amount of unrecovered bills, exceeding Tk13,000 crore, followed by Jalalabad Gas Transmission and Distribution System with over Tk4,454 crore.
The four other gas distribution companies are Bakhrabad Gas Distribution Company, Karnaphuli Gas Distribution Company, Pashchimanchal Gas Company, and Sundarban Gas Company.
Keep updated, follow The Business Standard's Google news channel
The Bangladesh Power Development Board (BPDB), which procures electricity from power plants and supplies it to power distribution companies, owes Petrobangla Tk8,746 crore. The board purchases gas to run state-owned power plants under its supervision, according to sources at the BPDB.
All private power plants, including Haripur Power, Meghnaghat Power, Summit Meghnaghat Power, Regent Energy and Power, United Power, and Summit Bibiana-2, collectively owe Tk13,593.41 crore to Petrobangla.
Again, Tk2,430 crore are owed by the Bangladesh Chemical Industries Corporation (BCIC), under the industries ministry, to gas distribution companies. The BCIC buys gas to run fertiliser factories.
On 8 March, State Minister for Power, Energy, and Mineral Resources Nasrul Hamid asked the authorities concerned to take the necessary initiatives to collect the outstanding gas bills without any delay.
"The gas lines to government institutions should also be cut off if they fail to pay their bills on time," he warned.
When asked about the measures his ministry is taking to recover the arrears, he said, "The prime minister has repeatedly directed us to cut lines. We will now go into action. I have already asked for the list of companies. I will talk to the prime minister about the list and take action."
According to Petrobangla sources, the BCIC has not paid bills since the increase in gas prices in June last year, causing the amount of outstanding dues to increase day by day.
Petrobangla supplies gas to fertiliser companies through its distribution companies. Fertiliser factories under the BCIC collectively owe Petrobangla Tk642.91 crore, including Tk423.08 crore from Jamuna Fertiliser and Tk201.47 crore from Ghorashal Palash Urea Factory.
Shahjalal Fertiliser Company owes Tk745.75 crore to Jalalabad Gas Transmission and Distribution System, Ashuganj Fertiliser Tk491.31 crore to Bakhrabad Gas Distribution Company, and Chattogram Urea Factory owes Tk388.42 crore to Karnaphuli Gas Distribution Company.
Petrobangla has stated that the BCIC and the Ministry of Industries have not paid the arrears despite repeated reminders. Zanendra Nath Sarkar, chairman of Petrobangla, expressed concern that the situation is escalating to the point where there may be no option but to stop gas supply to compel factories to clear their outstanding gas bills.
"The arrears are increasing day by day. We have not received any bills from fertiliser companies since the increase in gas prices in June last year, even after repeated reminders," he told The Business Standard. "We hope they will pay the bills soon."
He also said, "We are also demanding payment of dues owed to companies under Petrobangla to ensure prompt settlement of outstanding amounts."
