Energy Bangla

The gas distribution companies of the country have submitted their proposal to the Bangladesh Energy Regulatory Commission (BERC) to increase gas prices, on average, by 87.66 per cent, according to sources.
Six gas distribution companies have submitted a uniform proposal to increase the household gas price by 83 per cent for single burner ovens and 85 per cent for double burner ovens. The proposed prices for single burners is Tk 1,100 and Tk1,200 for double burners, as against the current prices of Tk 600 and Tk 650, respectively.
The companies have asked the BERC to increase the per unit price of CNG from the existing Tk. 27 per unit to Tk. 49.50, thereby marking an 83 per cent increase.
For electricity producers, the gas distributors have proposed to increase the per unit price by 63 per cent—from Tk. 2.82 to Tk. 4.60. For captive power producers, the proposed increase is by 130 per cent—from Tk. 8.36 to Tk. 19.26.
The other proposed increases are for fertiliser (from Tk. 2.58 to Tk. 4.41 per unit ), industry (from Tk. 6.74 to Tk. 10.95 per unit ), commercial users (from Tk. 11.36 to Tk. 19.50 per unit), and household meter-based users (from Tk. 7 to Tk. 16.80 per unit).
BERC commissioner Dr Salim Mahmud told that they have received the proposal for increasing gas prices. “We’ve received the proposal. However, it doesn’t mean that the prices will be increased,” he said, adding that the prices will be adjusted through public hearings.
Mashiur Rahman, managing director of Titash Gas Distribution Company Ltd, told that they have submitted a proposal to the BERC for increasing gas prices. He said that the company is paying a hefty amount as wage payments to its employees because of the new pay scale. Besides, the bank interest rates have come down from 12-13 per cent to 6-7per cent. “We want the prices to be readjusted,” he added.
Nizamul Hasan, managing director of Bakhrabad Gas Distribution Company Ltd, said that they have submitted a uniform proposal to increase gas prices. “The government will decide whether or not to increase the price. We’ve just submitted our proposal,”, he added.
About the proposed gas price hike, Dr M Tamim, a professor of the petroleum and mineral resources engineering department, said that gas is under-priced in Bangladesh. “I’ve long been saying that the gas price for household ovens should be over Tk. 1,000. A look at the neighbouring countries will make it evident that we’re providing gas to households at the cheapest possible price,” he added.
M Tamim said that the gas reserves of the country are dwindling fast. “The gas supply should be prioritised now,” he noted, adding that the government should think twice before giving new gas connections to non-productive sectors.
On the other hand, Prof. Shamsul Alam, energy advisor of the Consumer Association of Bangladesh, told that the proposal for increasing gas prices is not logical. “This is unacceptable from the legal point of view,” he said, adding that the hike would have a chain effect on the prices of products and thereby decrease the purchasing power of the people.
“The revenue generated by gas distribution companies is still higher than their expenses. I don’t see any reason behind this proposal. We need to move away from the ad hoc price adjustment system to a pricing policy that is transparent, predictable and market-based,” he observed.
The government had increased the prices of gas by an average of 27.56 per cent from September 1 last year.