As the gas supply crisis deepens and legal connections remain ensnared in bureaucratic delays, an unchecked syndicate continues to thrive, providing illegal gas lines at exorbitant rates.
While authorities claim to be cracking down on these unauthorized connections, evidence suggests that certain groups are actively enabling them.
Experts argue that officials exaggerate system loss figures to conceal these gas theft networks, raising serious concerns about accountability and safety.
Under a 1996 law, the Bangladesh Energy Regulatory Commission (BERC) permits Titas Gas to account for a 2 percent system loss.
However, the input-output deficit has increased significantly, indicating that theft-related system losses are escalating rather than declining.
A December report from Titas Gas Transmission and Distribution recorded a system loss of 10.6 percent that month.
At that time, Titas was drawing approximately 1.33 billion cubic feet of gas daily but selling only around 1.18 billion cubic feet per day, resulting in a daily loss of 140 million cubic feet over the month.
Titas Gas Managing Director Shahnewaz Parvez reported that in December, the Bhairab unit sold 2.36 million cubic feet of gas daily, despite a consumption of 3.98 million cubic feet, reflecting a staggering 40 percent system loss.
Shahnewaz also attributed system losses to other factors, stating, “The area has more consumers, and they leave their stoves burning. Some stoves used up to 120 cubic feet of gas.”
According to Titas data, Bhaluka in Mymensingh recorded the lowest system loss in December at 3.6 percent, while Dhaka Metropolitan saw a 10.6 percent deficit. Narayanganj suffered a loss of 20.9 percent.
To meet national gas demands, the interim government imports at least 25 percent of its supply as liquefied natural gas (LNG), with prices fluctuating between $13 and $40 per unit. Petrobangla estimates the cost at Tk 65 per cubic meter.
The government sells gas to eight consumer categories, with industrial users paying Tk 30 per cubic meter and power plants Tk 14.
Based on a rate of Tk 14 per unit, daily losses from system loss and gas theft amount to nearly Tk 2 billion, with theft accounting for a significant portion.
While many consider officials’ mismanagement in the gas sector as theft disguised as system loss, former BERC member Maqbul-E-Elahi Chowdhury labelled it as “robbery.”
“If 2 or 3 percent of gas is lost, it can be called system loss or theft. But when up to 40 percent of gas is being syphoned off, I can’t call it anything less than robbery,” he told bdnews24.com.
“Even calling it robbery would be an understatement.”
Md Shamsul Alam, energy advisor to the Consumers Association of Bangladesh (CAB), challenged the legitimacy of system loss claims, stating, “We oppose even the 2 percent system loss claim.”
He further noted that surplus gas remains due to low gas pressure in other distribution companies and lower-than-expected residential consumption.
Titas serves 2.8 million residential customers, including around 400,000 prepaid meter users.
Initially, residential customers were allocated 82 cubic feet of gas, later reduced to 72 and then 60 cubic feet.
Maqbul highlighted that households with prepaid meters typically consume only 40 to 50 cubic feet of gas at most.
“The extra allocation for the 2.4 million residential customers is being diverted through illegal connections by Titas officials,” he said.
Due to the gap between natural gas production, import costs, and consumer pricing, the government had to subsidize the sector with Tk 65.7 billion for the 2023-24 fiscal year, according to the Ministry of Power, Energy, and Mineral Resources.
Between September last year and February 26 this year, Titas reportedly severed 27,612 illegal connections, including 210 industrial, 125 commercial, and 27,277 residential connections, along with the removal of 138 km of illegal pipelines.
However, system losses caused by theft remain evident in financial reports from the past two years, as well as in the December-January figures.
In FY 2022-23, Titas recorded a system loss of 5.28 percent, which increased to 7.67 percent the following year. In December and January, system loss figures neared 10 percent.
Maqbul attributed this rise in system loss to illegal connections facilitated by Titas insiders, stating, “The increase in system loss directly indicates a rise in theft and robbery.”
During a recent public hearing, Titas presented data showing a 13.13 percent system loss.
In response, CAB Advisor Shamsul criticized the terminology used, saying, “The term ‘system loss’ is merely a misuse of language in these cases. We call these thefts a form of plunder.
“Titas cannot shift the blame for waste and theft onto consumers.”
He emphasized the need for organized action to address this issue, stating, “No rights have ever been established without a movement.”
RECENT CRACKDOWNS ON GAS THEFT
In January, a Titas Gas operation in Gazipur’s Kashimpur dismantled an illegal gas network spanning nearly 2 km, severed 450 unauthorized residential gas connections, and removed 500 meters of pipeline.
However, since all houses in the area were locked during the raid, no penalties could be imposed on those responsible.
On March 9, the Anti-Corruption Commission (ACC) launched an operation to cut off illegal gas connections at two restaurants in Dhaka’s Dhanmondi.
The ACC had received complaints that certain Titas officials were colluding to install these unauthorized connections.
That day, ACC officials visited the Titas office to collect records of legal gas connections in the area before conducting the raid alongside Titas representatives.
They discovered unauthorized gas lines at Rosona Bilash Hotel & Restaurant and Green Bangla Hotel & Restaurant.
ACC Deputy Director Md Akhtarul Islam stated that these restaurants had been siphoning gas directly from Titas pipelines, causing the state-owned company an estimated monthly loss of Tk 500,000.
Under the Bangladesh Gas Act 2010, unauthorized connections and meter tampering carry fines and imprisonment.
The minimum penalty varies by consumer category but can include a fine of up to Tk 10,000, a three-month jail term, or both. Repeat offenders face double penalties, while the maximum punishment includes two years in prison or a Tk 200,000 fine, or both.
For repeated violations, sentences can increase to five years of imprisonment and a Tk 500,000 fine.
Despite ongoing crackdowns, system losses at Titas continue to rise.
When questioned about this trend, Titas’s managing director claimed that the situation had previously been worse, reaching 13 percent in October.
He stated that system losses had been gradually declining since November-December and were expected to drop to 9 percent in February.
Regarding unauthorized connections facilitated by insiders, Shahnewaz admitted, “These cannot be stopped. As soon as we disconnect them in one place, they are reinstalled elsewhere.”
“Influential people are behind this—it is common knowledge.”
On the issue of system losses, he noted that “many of Titas’s pipelines are old and prone to leakage.”
“We estimate at least 3 percent of the loss is due to leaks, while the remaining 3 percent could be due to theft.”
When asked about the lack of strict punishments for offenders, Shahnewaz stated that magistrates determine sentencing, and penalties are at the discretion of the judiciary.
Attempts to reach Energy Advisor Md Fouzul Kabir Khan for comments on government efforts to curb gas theft were unsuccessful, as he did not respond to calls.
CAB Advisor Shamsul criticized the leniency in punishing offenders, stating, “This shows that even though the previous government is no longer in power, the state itself remains subjugated to networks of thieves and criminals.”
