The government is facing significant financial losses in the gas sector attributed to “system loss.” Petrobangla estimates an annual loss of Tk 3,500 to 4,000 crore due to inefficiencies in the supply network, nearly half of the subsidies allocated to the sector. The losses are linked to distribution defects, illegal connections, and gas theft. Some experts suggest that high gas purchase costs might be hidden under the guise of “system loss” or theft. Regardless of the cause, a substantial amount of gas is unaccounted for, which is concerning given the ongoing gas crisis impacting industrial operations and other sectors.
In the fiscal year 2023-24, an average of 6.28 percent of gas was lost in distribution lines, amounting to 2,036 million cubic meters and causing a financial loss of Tk 3,790 crore. By March of FY2024-25, the loss increased to 7.44 percent, resulting in 1,451 million cubic meters of gas lost and a financial loss of Tk 3,286 crore. Officials project a total loss close to Tk 4,000 crore for the full fiscal year. With the government having to import LNG to address gas shortages and provide substantial subsidies, such avoidable losses are troubling. Petrobangla received Tk 8,900 crore as gas sector subsidies in FY2024-25, and losing nearly half of that to theft and wastage is unacceptable.
Experts note that international standards allow for a maximum gas loss of only 0.20 to 0.30 percent in distribution lines, making the current system loss in the transmission and distribution network alarmingly high. The reported two percent loss by the state-owned Gas Transmission Company Limited (GTCL) is deemed unreasonable, considering high-pressure transmission lines should not incur significant wastage. While Petrobangla cites technical faults, experts emphasize the importance of thorough investigations to identify potential leaks or system errors.
The issue of system loss demands urgent attention. Authorities should reduce wastage by leveraging advanced technology and closely monitoring faults in transmission and distribution lines. Upgrading outdated pipelines, addressing leakages, ensuring transparency in LNG procurement, and enhancing accountability are crucial steps. Petrobangla must enhance oversight and combat illegal connections. Accelerating domestic gas exploration is key to reducing dependence on costly imported LNG.