A public hearing on settling upon the gas prices will set forth from today, which will endure till 18th August.
Bangladesh Energy Regulatory Commission (BERC) is arranging this public hearing at the TCB Bhaban in Dhaka’s Karwan Bazar in response to the “gas transmission tariff and price hike proposals” submitted by the 7 state-owned gas transmission and distribution companies.
Six of the gas distribution companies and one Transmission Company along with Petrobangla and three other production companies will take part at the hearing organized by BERC. Anyone registered before 1st August at BERC can participate at the public hearing. The commission will publish its verdict within 3 months after the completion of the hearing.
The companies have proposed to raise the price of gas by 66 to 140 percent from July 1st, 2016. BERC as a watchdog body will adjust the prices of gas by evaluating the proposals, after the hearing being held.
According to the sources from BERC, the hearing on proposals of the Gas Transmission Company Limited (GTCL) will be held today. The following hearing will be held on 8th August on the proposals of Titas Gas Transmission and Distribution Company Ltd. Similarly, the hearing on the proposals of Pashchimanchal Gas Company Limited will be held on August 10, Bakhrabad Gas Distribution Company Limited on August 11, Karnaphuli Gas Distribution Company Limited on August 14, Jalalabad Gas Transmission and Distribution System Limited on August 16 and Sundarban Gas Company Limited on August 17. The bulk tariff hearing of Petrobangla, Bangladesh Petroleum Exploration and Production Company Limited, Bangladesh Gas Fields Company Limited and Sylhet Gas Fields Limited will be held on August 18. Every day, the hearing will start from 11 AM local time.
According to the proposals of the distribution companies, the cost of single burner oven will go up to Tk 1100 from the existing Tk 600 while the double burner Tk 1200 from the existing Tk 650 per month. The proposed hike is 83 and 85 percent respectively for single and double burner ovens. As per the proposal of Titas Gas, the price of household gas will be hiked by highest 140 percent where gas price will be raised to Tk 16.80 per unit from Tk 7.
The compress natural gas (CNG) gas price has been proposed to be raised by 83 percent to Tk 49.50 per unit from the existing Tk 27. In this case, the consumer will have to pay Tk 57.50 for per unit GNG in place of the current price of Tk 35 per unit. The power plant’s gas price has been proposed at Tk 4.60 per unit (per cubic metre) from Tk 2.82 with 63 percent hike. The gas price for industries was proposed to be Tk 10.95 per unit instead of Tk 6.78 with 62 percent hike in price. The commercial establishments’ gas price was sought to be raised by 72 percent to Tk 19.50 percent from the existing Tk 11.36 per unit. The captive power plants’ gas price was proposed to be raised by 130 percent to Tk 19.26 from the current rate of Tk 11.36 per unit. The gas price for fertilizer factories was proposed to be set at Tk 4.41 per unit from Tk 2.82 with a 71 percent hike in price.
Petrobangla chairman Istiaque Ahmed asserted that Petrobangla has to procure and buy gas from different local and international companies. Petrobangla has to pay vat and taxes on the bought gas which is an added financial burden; to sustain the deficit Petrobangla must sell the gas at a higher price, he claimed.
However, reports suggest that the government had to hike the prices of gas by 26.29 percent just a few months back on 1st September 2015 in response to the same companies’ proposals.