As gas shortages bring industrial activity to a standstill and leave households struggling with dwindling supplies for cooking, state-owned gas distributor Titas has reported another year of nearly 10 per cent system loss, classified as wastage.
Although the Bangladesh Energy Regulatory Commission (BERC) allows a system loss of 2 per cent, the rate at Titas has reached 9.96 per cent, equivalent to Tk2,719 crore.
The figures were disclosed in Titas’s audited financial statements for the 2025-26 financial year. According to the report, Titas received a total of 15,428 million cubic metres (MCM) of gas during the year from various production and transmission companies and through its own transmission lines.
Of this volume, it sold 13,892 MCM to consumers, leaving a difference of 1,536 MCM.
The financial value of Titas’s system loss stood at Tk2,422 crore in the previous financial year.
Energy expert Ijaz Hossain told TIMES: “Now we have to import liquefied natural gas (LNG) to meet the gas shortage. If this gas were not being wasted or stolen, perhaps we would not have to import so much LNG. This is an enormous financial burden for the country.”
In its audit report, Titas identified several reasons for the system loss. These include illegal gas connections, ageing and deteriorating distribution pipelines, damage to pipelines during underground works by public and private agencies, the absence of actual consumption data for unmetered or flat-rate residential customers, differences between the volume of gas supplied and consumer-level meter readings, and gas wastage through internal pipelines in homes without meters.
The report said the company had to bear the cost of gas that was not sold to consumers because its system loss exceeded the approved limit, adversely affecting its profitability.
Titas’s system loss rate has risen steadily over the past few years. It remained within BERC’s approved limit of 2 per cent in the 2020-21 and 2021-22 financial years. Over the following three financial years, the rate rose to 5.28 per cent, 7.67 per cent and 9.47 per cent, respectively. It increased further in the subsequent year.
Titas had a revenue of Tk36,940.99 crore in the 2025-26 financial year, up from Tk35,428.89 crore in the previous year. However, the cost of gas sales and supply stood at Tk37,147.03 crore, resulting in a loss of Tk206.04 crore from gas sales alone.
After accounting for administrative expenses, gas transmission and distribution costs, financing expenses and other operating costs, Titas’s operating loss stood at around Tk909 crore. However, income from investments and other sources reduced its loss before tax to Tk298.30 crore.
Despite recording a loss, Titas was required by law to pay turnover tax. It reported a tax expense of Tk296.89 crore. Overall, the company posted a net loss of Tk595.20 crore in the 2025-26 financial year, compared with Tk772.04 crore the previous year.
Abu Sadat Md Sayem, deputy general manager of Titas Gas’s Vigilance Division, told TIMES: “Many of our pipelines were built in the 1970s and 1980s. These pipes have a lifespan of 30 to 40 years. In addition, pipelines are damaged during development work being carried out by various government agencies. In many cases, leaks cannot be detected immediately. Significant volumes of gas escape through these leaks.”
Regarding illegal connections, Sayem added: “Extensive illegal gas lines have been installed since 2016. Although connections are disconnected through regular drives and mobile courts, people easily obtain illegal connections again. Additional burners are also being installed in households beyond the number of approved burners.”
Energy expert Ijaz Hossain also chimed in: “We know that there are leaks in Titas’s pipelines. But the extent of gas theft and illegal consumption needs to be properly established. Technical and non-technical losses should be calculated separately.”
He said that while some losses occur in electricity transmission for technical reasons, gas should not be lost from pipelines unless there are leaks.
According to government estimates, daily gas demand in the country stands at around 3,800 million cubic feet, against a supply of approximately 2,600 million cubic feet. Amid this gap between demand and supply, gas losses through system inefficiencies are further increasing import dependence and financial pressure.
