Return to 2022 gas prices as Bangladesh textile production drops: BTMA

31 Jan '24

2 min read

Pic: Adobe Stock

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As production in Bangladesh textile mills has dropped due to an acute gas crisis, a trade body has demanded a return to the 2022 gas prices.
Though Petrobangla had promised uninterrupted supply after the price hike, that is yet to be fulfilled after a year.
The government was urged to prioritise supplying gas to industries over households and CNG stations.

As production in textile mills in Bangladesh has dropped to less than half due to a severe gas crisis in major industrial belts, the Bangladesh Textile Mills Association (BTMA) recently demanded a return to the 2022 gas prices for textile industries till the current crisis gets resolved.

The Narayanganj industrial hub is facing near blackout conditions for the past 15 days, while gas pressure in the Savar, Gazipur and Ashulia hubs has dropped to a critical 1-2psi, severely affecting production.

Expressing his despair over the current situation, BTMA president Mohammad Ali Khokon told a recent press conference that though Petrobangla had assured mill owners of uninterrupted supply once the prices were raised, the promise is yet to be fulfilled after a year.

The government increased gas prices by as much as 179 per cent in January last year, with an aim to adjust subsidies and reduce the fiscal deficit.

For large industries, including textile, the price was raised up to Tk30 from Tk11.98.

Khokon urged the government to prioritise supplying gas to industries over households and CNG stations, which consume 19 per cent of the total gas supply. Redirecting half of this supply to industries could potentially generate four to five times more foreign currency, the association estimated.

The households and CNG stations can easily shift to LPG, he was quoted as saying by domestic media reports.

ALCHEMPro News Desk (DS)

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