Kazi Zahidul Hasan :
Business leaders on Friday expressed their resentment over the government’s move to increase power and gas tariffs afresh.
Terming the move “unjustified”, they said, the government seems to raising energy tariffs in regular interval from a “flawed policy” which severely affect production and make local industries uncompetitive in the global arena.
They said that the authorities must refrain from taking such decisions that could add to the already deepening crises like financial and economic constraints to the industrial and household consumers.
“Already burdened by the high cost of production, a fresh hike in power and gas tariff would severely hit the industry, besides putting burden on the common people,” Abdus Salam Murshedy, President of the Exporters’ Association of Bangladesh (EAB) told The New Nation on Friday.
The hike would also make local produces uncompetitive in the global market, he added.
The EAB leader observed that the government had raised power tariff several times during its tenure but failed to ensure reliable and uninterrupted supply of power to the industries.
“Industries are bearing the brunt of such tariff hike because all these were futile exercise in terms of supply,” he said, adding, “Business community would not support tariff hike a fresh in power unless supply is improved”.
Murshedy apprehended that the hike in power and gas prices could lead to closure a number of small and medium manufacturing units slashing millions of jobs.
Criticizing the move, he said, “I see no logic in a fresh move to hike electricity tariff when the government’s capacity of providing subsidy in power sector increased with the record slump
in oil prices on the international market”.
He added: “I would be realistic to cut power tariff rather go for further hike when production cost of electricity came down in the wake of oil price fall in the global market”.
Murshedy urged the government to refrain from taking power and gas tariff hike decision considering economic realty of the country.
Earlier, State Minister for Power, Energy and Mineral Resources Nasrul Hamid Bipu hinted at an increase in the prices of power and natural gas but claimed the ‘slight’ hike would not be a burden on the industrial and household consumers. Arguing for a fresh price hike, Bipu said, income of the people and use of technologies were rising. “Energy prices have to be adjusted with them”.
“The manufacturing costs of the country’s export-oriented garment industries would increase substantially if the tariff is increased,” Mahmud Hasan Khan Babu, Vice-President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told The New Nation on Friday.
He said, “Our industries are not in a position to bear additional cost burden arising from a fresh price hike for gas and electricity when they are making additional investment to improve their safety standards in line with the global buyers.”
Terming it a highly “unjustified move,” Babu said that it would badly affect competitiveness of the local industries as well as increase their cost of doing business.
“It would be an “unwise decision” as hike in energy tariff always brings negative impacts on production and livelihood of the people, and later it leaves a knock-on effect on the whole economy,” M Shafiul Islam Mohiuddin, Vice-President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) told The New Nation yesterday.
Protesting the move, he urged the government to take urgent measures to reduce the transmission and distribution losses, check power theft and bring transparency in the working of power companies instead of taking such anti-business and anti-growth measures.
Mohiuddin said, energy prices are highly correlated to the economic growth rate as affordable tariffs give boost to business and industrial activities, but higher tariffs led to the stagnation of industry, increased production cost, hiked inflation and pushed up the prices of finished goods making local exportable very uncompetitive in the global market.
“So, the government should give due consideration to these facts and avoid making any further increase in power tariffs” he added.
The Awami League government last year hiked gas and electricity prices at the consumers’ level by 26.29 per cent and electricity by 2.93 per cent. During its 2008-2014 tenure, electricity prices were increased on 11 occasions at wholesale and retail levels.
Business leaders on Friday expressed their resentment over the government’s move to increase power and gas tariffs afresh.
Terming the move “unjustified”, they said, the government seems to raising energy tariffs in regular interval from a “flawed policy” which severely affect production and make local industries uncompetitive in the global arena.
They said that the authorities must refrain from taking such decisions that could add to the already deepening crises like financial and economic constraints to the industrial and household consumers.
“Already burdened by the high cost of production, a fresh hike in power and gas tariff would severely hit the industry, besides putting burden on the common people,” Abdus Salam Murshedy, President of the Exporters’ Association of Bangladesh (EAB) told The New Nation on Friday.
The hike would also make local produces uncompetitive in the global market, he added.
The EAB leader observed that the government had raised power tariff several times during its tenure but failed to ensure reliable and uninterrupted supply of power to the industries.
“Industries are bearing the brunt of such tariff hike because all these were futile exercise in terms of supply,” he said, adding, “Business community would not support tariff hike a fresh in power unless supply is improved”.
Murshedy apprehended that the hike in power and gas prices could lead to closure a number of small and medium manufacturing units slashing millions of jobs.
Criticizing the move, he said, “I see no logic in a fresh move to hike electricity tariff when the government’s capacity of providing subsidy in power sector increased with the record slump
in oil prices on the international market”.
He added: “I would be realistic to cut power tariff rather go for further hike when production cost of electricity came down in the wake of oil price fall in the global market”.
Murshedy urged the government to refrain from taking power and gas tariff hike decision considering economic realty of the country.
Earlier, State Minister for Power, Energy and Mineral Resources Nasrul Hamid Bipu hinted at an increase in the prices of power and natural gas but claimed the ‘slight’ hike would not be a burden on the industrial and household consumers. Arguing for a fresh price hike, Bipu said, income of the people and use of technologies were rising. “Energy prices have to be adjusted with them”.
“The manufacturing costs of the country’s export-oriented garment industries would increase substantially if the tariff is increased,” Mahmud Hasan Khan Babu, Vice-President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told The New Nation on Friday.
He said, “Our industries are not in a position to bear additional cost burden arising from a fresh price hike for gas and electricity when they are making additional investment to improve their safety standards in line with the global buyers.”
Terming it a highly “unjustified move,” Babu said that it would badly affect competitiveness of the local industries as well as increase their cost of doing business.
“It would be an “unwise decision” as hike in energy tariff always brings negative impacts on production and livelihood of the people, and later it leaves a knock-on effect on the whole economy,” M Shafiul Islam Mohiuddin, Vice-President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) told The New Nation yesterday.
Protesting the move, he urged the government to take urgent measures to reduce the transmission and distribution losses, check power theft and bring transparency in the working of power companies instead of taking such anti-business and anti-growth measures.
Mohiuddin said, energy prices are highly correlated to the economic growth rate as affordable tariffs give boost to business and industrial activities, but higher tariffs led to the stagnation of industry, increased production cost, hiked inflation and pushed up the prices of finished goods making local exportable very uncompetitive in the global market.
“So, the government should give due consideration to these facts and avoid making any further increase in power tariffs” he added.
The Awami League government last year hiked gas and electricity prices at the consumers’ level by 26.29 per cent and electricity by 2.93 per cent. During its 2008-2014 tenure, electricity prices were increased on 11 occasions at wholesale and retail levels.
