Energy Bangla

The government is planning to subsidise the use of LPG for cooking by accumulating money through a hike in gas prices for household users.
The energy division would soon send a proposal to the Prime Minister’s Office for approval of prime minister Sheikh Hasina, who also holds the portfolio of power, energy and mineral resources, state minister Nasrul Hamid told New Age on Thursday.
The energy division, if the prime minister approves the proposal, would pursue the Bangladesh Energy Regulatory Commission to facilitate the implementation of the government plan through increasing the price of natural gas for household users, officials said.
Proposals of six state-run gas distribution companies for raising the price of natural gas for all users including about three million household users are now pending with the commission.
The commission in February 2015 held public hearings on the proposals where the gas companies wanted to increase the price of natural gas by up to 122 per cent for household users.
The distribution companies proposed to increase the price of gas for double burners in households to Tk 1,000 from Tk 450 and for single burners to Tk 850 from Tk 400, although they were in profit.
Nasrul said that the government would subsidise the use of Liquefied Natural Gas or LPG in a bid to rationalise the cooking fuel market as the LPG users spent two to three times more than those who used piped gas.
When asked, he said that the authorities concerned were yet to make a decision on the mechanism and amount of subsidy to be provided to the consumers for their purchase of each kilogramme of LPG.
‘It would be the best if the government can give the subsidy directly to the consumers’ bank accounts after their purchase,’ he said, adding that the other option was to give subsidy to LPG marketing companies.
Energy experts also placed similar suggestions during the February hearings on gas price hike as piped gas users, only 10 per cent of the total number of households, were getting benefit of the lower price of gas.
The rest of the people bear the burden of expensive cooking fuels like LPG, kerosene and biomass, the experts said, adding that smoke of biomass also caused serious health hazard to women when they cook.
Public and private sector bottlers now supply about one lakh tonnes of LPG a year although the experts said that the demand was three to five times higher.
They said that lack of incentives and infrastructural facilities were the main constrains for expansion of LPG market.
Titas Gas Transmission and Distribution Company, Jalalabad Gas Transmission and Distribution System, Bakhrabad Gas Distribution Company, Pashchimanchal Gas Company, Karnaphuly Gas Distribution Company and Sundarban Gas Company supply about 300 million cubic feet of natural gas to three million households.