Bangladesh's BERC hikes gas tariffs for new industrial units by 33%

New industrial connections will be charged Tk 40 per cubic metre—up from Tk 30. New captive users will have to pay Tk 42 per cubic metre—up from Tk 31.5.

Existing operational units that use more than their sanctioned load will have to pay at the new rate for the excess consumption.

Plants that got primary approval for connections but are yet to start operations will have to pay 50 per cent of their bills at the existing rate and the rest of their sanctioned load at the new rate.

Gas distribution firms had proposed a 150-per cent tariff hike for new industrial units, BERC chairman Jalal Ahmed said while announcing the new rates, according to domestic media reports.

The new prices were, however, set after discussing with all stakeholders, he noted.

The Consumers Association of Bangladesh staged a human chain against the proposed hike, arguing that raising gas prices would stifle new investment, hinder job creation, disrupt exports and severely affect the economy.

Despite the country having ample gas reserves, the authorities have never taken the initiative to drill new wells and have become dependent on LNG imports that has primarily benefitted an oligarchic class, said Shawkat Aziz Russell, president of the Bangladesh Textile Mills Association.

The basis for attracting foreign investment is energy security, but how can investments be expected if gas prices are repeatedly raised, Shawkat lamented.

The Dhaka Chamber of Commerce and Industry (DCCI) in a statement said the hike will significantly raise the cost of business and send a negative message to foreign investors.

The Bangladesh Chamber of Industries termed the proposal to raise gas tariffs unconstitutional, unlawful and unfair. It demanded a reduction in gas prices by curbing system losses of the distributor companies. The gas sector sees around 9.6 per cent system loss now.

ALCHEMPro News Desk (DS)