The annual demand of Liquefied petroleum gas (LPG) in the country at present is about 14 lakh metric tonnes of which only 2% is locally produced at the government level while the remaining demand is met through imports, said State Minister for Power, Energy and Mineral Resources Nasrul Hamid.
"As the country's private LPG is dependent on imports, there is no scope to reduce the price in the domestic market without the government providing subsidy unless the price does not decrease in the global market," the state minister said yesterday in response to a question from the ruling party lawmaker AKM Sarwar Jahan in the parliament.
"The price of private LPG in the country is determined every month by the Bangladesh Energy Regulatory Commission by adjusting the price of LPG in the international market, fluctuations in the exchange rate of the US dollar and Value Added Tax (VAT)," added Nasrul Hamid.
In response to a question from M Abdul Latif, another Awami League lawmaker, the state minister said that due to the Russia-Ukraine war, countries both developed and developing are facing the energy crisis.
"The power and energy sector of Bangladesh is not out of this. Bangladesh is trying to overcome the crisis through economical use of electricity and planned load shedding," Nasrul Hamid said.
He added that as per the plan, along with the new coal-based power plants, which will be connected to the national grid, through ensuring cost-effective electricity usage, it will be possible to overcome the crisis soon.
Responding to a question from Lutfun Nesa Khan, Member of Parliament for reserved women's seat, Nasrul Hamid said the Bangladesh Offshore Model PSC 2019 is being revised and updated based on the opinions of international consulting organisations and Petrobangla's own review for the exploration and extraction of oil and gas in the country's offshore areas.
A new bidding round is planned to be announced by the first of next year following the upgrade, said the state minister.