THE New Nation on Monday reported that most manufacturing industries are using Compressed Natural Gas (CNG) cylinders in their plants both in absence of new gas connections and shortage of adequate gas supply from existing lines. The owners installed gas pipelines hoping new gas supply but they are using CNG now for running mills and factories raising production cost at least six times high making poor quality goods and losing competitiveness, mainly in export markets. Many wonder CNG fuel is mainly used to run small vehicles and autorickshaws, how can it be used to run mills and factories and sustain the business. Meanwhile, the government’s bubbles of development and frantic call for investment to achieve higher growth, is failing for shortage of gas, electricity and infrastructure leaving much of the development potentials under-utilized. Rather many investors are now looking for ways to move out their capital abroad to make good of the money in hand.
Meanwhile, large-scale gas pilferage has been reported with over 280 km illegal gas lines set up outside Dhaka and some adjoining districts. Powerful people have given illegal gas connection and minted illegal money when many genuine applicants are waiting for over 5 years in some cases and partially running production using highly expensive CNG cylinders to keep factories running and market supply continue, mainly to export markets. The use of CNG is spreading in industrial belts across the country, including Dhaka, Chittagong, Narayanganj, Munshiganj, Narsingdi and Gazipur while the government is not doing anything effective to mitigate the energy problems.
Some members of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have been quoted in the report as saying that they are charged Tk 6.74 for per cubic foot of gas in the industrial sector whereas many of them are buying per cubic foot CNG for Tk 35. Many manufacturing units in garments, footwear, farm products, textiles, cement, glass, ceramic, and plastic units are using the expensive fuel rather sitting with idle plants.
The industrial sector has a demand for 9.2 million cubic feet of gas daily but less than 60 percent is coming from the national gas grid. Industry owners say they can’t also utilize more than 35 percent of their production capacity due to inadequate gas supply or for low pressure in gas line. The businesspeople have no alternative and also can’t afford to make losses over longer period. The country is having over 500 mmcf gas shortage per day and it is only widening.
The government appears highly absorbed in holding the tight grip on power following a highly flawed election when the priorities of business and the difficulties that the industrial sector are facing have little impact on the leaders. The higher energy cost is thus escalating the cost of doing business shrinking the country’s export competitiveness particularly RMG export will be hard hit. People believe the country needs strong leaderships to save economy and business.
