Gas price hike: BERC asks distributors to submit proposals afresh

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Staff Reporter :Bangladesh Energy Regulatory Commission (BERC) has asked gas distribution entities to submit complete individual proposals for gas price hike as the earlier proposal was found incomplete.”We have received proposals for gas price increase from the gas distribution and transmission companies and we are working on it,” said BERC Chairman AR Khan. Prof Shamsul Alam, electricity expert and the advisor of Consumers’ Association of Bangladesh (CAB) said that the proposals of the utility companies are unlawful because there is no reason to hike price while they are making profit.It is alleged that the companies are influencing the government to hike gas price, though they are making profit for the last few years.According to their proposals, domestic users will have to pay Tk 1,200 per month instead of Tk 650 for each double burner, which is an 85 per cent hike. Consumers using metre-based burners will have to pay Tk 16.80 instead of Tk 7 per cubic metre – a 140 per cent increase whereas only 8 months ago gas price has been increased with effect from September 1 last year.The proposals also sought increase in prices of gas for commercial use, in power plants, tea gardens and CNG at consumer levels. Fertilizer companies and industrial users will also experience a price hike under this proposal.As per proposal, the seven distribution companies sought to hike price from July. They said proposal has been sent following the instruction of the Prime Minister office.In February last year, BERC organized a series of public hearings after state-owned gas distribution companies pressed to have gas tariffs increased.On August 27 the BERC has increased the price of gas by 26.29 per cent which has been affected from September 1.

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