The government of Bangladesh has highlighted the sharp rise in liquefied natural gas (LNG) prices as a key economic challenge, as it moves to simplify regulations and improve the overall business environment.
Commerce and Industries Minister Khandakar Abdul Muktadir on Monday said global energy market volatility - particularly the increase in LNG costs - has significantly strained the country’s import bill and industrial planning.
He noted that LNG prices have doubled from around $10 to $20 per MMBtu, creating additional pressure on energy procurement and supply management.
The minister made the remarks while speaking at a pre-budget consultation titled “Live Pre-budget Discussion 2026-27: Expectations of Private Sector” in Dhaka.
The event was organised by the Dhaka Chamber of Commerce and Industry (DCCI) in collaboration with Channel 24 and Daily Samakal.
Linking energy costs to broader economic reforms, the minister said the government is working to remove bureaucratic hurdles that slow down trade and investment, particularly in industries heavily dependent on imported energy such as LNG.
He announced that key trade facilitation processes, including Import Registration Certificates (IRC) and Export Registration Certificates (ERC), will be fully digitised. The current manual system, which often causes delays, will be replaced by an online platform allowing instant submission, payment and certificate issuance.
Muktadir said the rising LNG price, along with increases in crude oil and fertiliser costs, has tightened fiscal space and forced greater reliance on spot market purchases during supply disruptions.
He added that limited domestic storage capacity for LNG and petroleum products remains a major structural challenge, making the country more vulnerable to global price fluctuations.
To address this, the government is prioritising expansion of Floating Storage Regasification Units (FSRUs), boosting LNG import capacity, and accelerating local gas exploration to reduce dependency on expensive imports.
The minister also stressed the need to ensure stable energy supply for the industrial sector even during periods of shortage, describing it as essential for maintaining economic growth.
Alongside energy-focused reforms, the government is also exploring revitalisation of state-owned enterprises through foreign investment and industrial zoning, aimed at improving efficiency and employment generation.
Officials said the broader policy direction is to expand the tax base rather than increase tax rates, with upcoming budget proposals expected to reflect a more business-friendly and energy-conscious approach.
