Kazi Zahidul Hasan :
Business leaders on Sunday expressed mixed reaction over the latest power and gas tariff hike by the government, with some hailing and others criticising the plan.
“The government has increased power and gas tariff as part of its plan to rationalize energy prices. The rationalisation is a must for sustainable development of the energy sector,” Matlub Ahmed, President of the Federation of Chambers of Commerce and Industry (FBCCI), told The New Nation on Sunday.
He said, earlier the government stopped providing power and gas connections to the industries due to their supply shortage. Now it has approved new connections following the improved power generation.
“We want to run industries even after paying more for utilities as many factories are sitting idle due to lack of gas and electricity connections,” he added.
The FBCCI leader, however, urged the government to ensure uninterrupted power supply to the industrial units to make up the escalating power cost. “Once the industries are being provided with uninterrupted power, it will help factories to reduce their cost of production,” he added.
Justifying the energy price hike, Matlub Ahmed said, the Power Development Board (PDB) is procuring electricity at higher rates from the private power plants and selling it at comparatively lower prices to the distribution companies forcing it to incur huge loses every year.
“This has led the government to raise power tariff for several times to reduce PDB’s mounting losses,” he said, adding, “The business community expects a similar policy response from it to overhaul the domestic fuel prices”.
He further said the global fuel prices have fallen significantly in global market in last one year. But, the government is yet to take any steps to cut fuel oil prices for domestic market that adversely affects all economic sectors.
“The government should do so immediately to pass the benefit of falling global oil prices considering interest of the industrial sector as well as the national economy,” he noted.
“The government’s inability to supply low cost energy forced it to go for easy solution like increase power tariff time and again,” Syed Nasim Manzur, President of Metropolitan Chamber of Commerce and Industry (MCCI), told The New Nation on Saturday.
He, however, mentioned that the MCCI earlier suggested the government to the policy considering the country’s economic reality. It also called upon the government to review the fuel oil prices for local market in response to the global price fall.
“If the government goes for a downward adjustment in fuel prices, then people and industrial consumers could get relief from high energy cost,” he added.
Nasim Manzur further said if prices of oil were reduced in the domestic market, cost of transportation would decline, commodity prices would go down and the industries would be benefited from lower cost of production.
When asked, he said, the increase in energy prices would definitely have a short-term impact on both household and industrial consumers. It would also raise cost of doing business and affect competitiveness of local merchandises in global market,”
Expressing dissatisfaction over the latest hike in power and gas tariffs, M Siddiqur Rahman, President of the Bangladesh Garments Manufactures and Exporters Association (BGMEA) told The New Nation that it would prove a cutthroat for the national economy, besides, leaving the worst effects on the export-oriented apparel industry.
“The entire industrial sector was confronted with many challenges due to high energy cost, increased taxes and lack of gas and electricity. A fresh increase in power and gas tariffs will further aggravate their problems,” he added.
He claimed that frequent energy price hike increased the burden on the country’s manufacturing sector, pushing it to face an uneven competition with other global players.
“Production cost of local industries has increased significantly during last few years following frequent increase in fuel and electricity prices and high lending rates. When the sector is burdened by high cost of production, a fresh hike in energy prices would lead it to further hardship,” Abdus Salam Murshedy, President, Exporters Association of Bangladesh (EAB) told The New Nation yesterday.
He criticised the government for hiking energy prices a fresh and said there is no logic behind the increase because the international oil prices have come down, while the government has instead of giving relief to the people and industrial consumers put further pressure on them.
“Many industries, particularly export-oriented ones, are facing immense challenge to hold their global presence following rise in their production cost. So, a price cut of petroleum products in domestic market could help industries tide over such difficult situations,” he noted.
Business leaders on Sunday expressed mixed reaction over the latest power and gas tariff hike by the government, with some hailing and others criticising the plan.
“The government has increased power and gas tariff as part of its plan to rationalize energy prices. The rationalisation is a must for sustainable development of the energy sector,” Matlub Ahmed, President of the Federation of Chambers of Commerce and Industry (FBCCI), told The New Nation on Sunday.
He said, earlier the government stopped providing power and gas connections to the industries due to their supply shortage. Now it has approved new connections following the improved power generation.
“We want to run industries even after paying more for utilities as many factories are sitting idle due to lack of gas and electricity connections,” he added.
The FBCCI leader, however, urged the government to ensure uninterrupted power supply to the industrial units to make up the escalating power cost. “Once the industries are being provided with uninterrupted power, it will help factories to reduce their cost of production,” he added.
Justifying the energy price hike, Matlub Ahmed said, the Power Development Board (PDB) is procuring electricity at higher rates from the private power plants and selling it at comparatively lower prices to the distribution companies forcing it to incur huge loses every year.
“This has led the government to raise power tariff for several times to reduce PDB’s mounting losses,” he said, adding, “The business community expects a similar policy response from it to overhaul the domestic fuel prices”.
He further said the global fuel prices have fallen significantly in global market in last one year. But, the government is yet to take any steps to cut fuel oil prices for domestic market that adversely affects all economic sectors.
“The government should do so immediately to pass the benefit of falling global oil prices considering interest of the industrial sector as well as the national economy,” he noted.
“The government’s inability to supply low cost energy forced it to go for easy solution like increase power tariff time and again,” Syed Nasim Manzur, President of Metropolitan Chamber of Commerce and Industry (MCCI), told The New Nation on Saturday.
He, however, mentioned that the MCCI earlier suggested the government to the policy considering the country’s economic reality. It also called upon the government to review the fuel oil prices for local market in response to the global price fall.
“If the government goes for a downward adjustment in fuel prices, then people and industrial consumers could get relief from high energy cost,” he added.
Nasim Manzur further said if prices of oil were reduced in the domestic market, cost of transportation would decline, commodity prices would go down and the industries would be benefited from lower cost of production.
When asked, he said, the increase in energy prices would definitely have a short-term impact on both household and industrial consumers. It would also raise cost of doing business and affect competitiveness of local merchandises in global market,”
Expressing dissatisfaction over the latest hike in power and gas tariffs, M Siddiqur Rahman, President of the Bangladesh Garments Manufactures and Exporters Association (BGMEA) told The New Nation that it would prove a cutthroat for the national economy, besides, leaving the worst effects on the export-oriented apparel industry.
“The entire industrial sector was confronted with many challenges due to high energy cost, increased taxes and lack of gas and electricity. A fresh increase in power and gas tariffs will further aggravate their problems,” he added.
He claimed that frequent energy price hike increased the burden on the country’s manufacturing sector, pushing it to face an uneven competition with other global players.
“Production cost of local industries has increased significantly during last few years following frequent increase in fuel and electricity prices and high lending rates. When the sector is burdened by high cost of production, a fresh hike in energy prices would lead it to further hardship,” Abdus Salam Murshedy, President, Exporters Association of Bangladesh (EAB) told The New Nation yesterday.
He criticised the government for hiking energy prices a fresh and said there is no logic behind the increase because the international oil prices have come down, while the government has instead of giving relief to the people and industrial consumers put further pressure on them.
“Many industries, particularly export-oriented ones, are facing immense challenge to hold their global presence following rise in their production cost. So, a price cut of petroleum products in domestic market could help industries tide over such difficult situations,” he noted.
