THE incumbent government is set to increase the prices of gas and electricity from the very dawn of the new year. It is surprising that while the country’s economy is passing through crisis times due to slow investment and banking scams, and crude oil prices are at the lowest after 2009 internationally the decision to increase prices of the energy products will affect the commoners life, burden the businesses, and become a overall burden on the economy. This destructive decision for the economy and people has been taken, according to The New Nation, as private retailers and wholesalers of energy products submit proposals to Bangladesh Energy Regulatory Commission (BERC). The consumers will have to pay between 5 and 122 percent increased gas prices and 18.12 percent increased electricity prices.
Dailies said the gas retailers in favour of their argument said that the prices are very low in Bangladesh compared to neighbouring countries and Power Development Board (PDB), lone buyer and seller of wholesale electricity, said the production cost is higher than retail tariffs. The simple arguments without considering people’s sufferings and burden on economy have convinced the regulatory commission to arrange three public hearings to finalise the tariff proposed by the retailers.
According to the proposals, power plants will have to buy 1,000 cubic metres of gas at Tk 84 which is now Tk 79.82. For the same amount of gas, fertiliser factories, captive power plants, industries, tea gardens and commercial buildings will have to pay at various increased rates from 5-122 percent of the current prices.
Meanwhile, the PDB has proposed a 18.12 percent rise in bulk electricity rates. It sells power to the five retailers at an average rate of Tk 4.67 per kilowatt-hour unit of electricity although the production cost is Tk 6.54 per unit. The government had to pay a subsidy of Tk 7,560 crore related to the tariff-induced deficit in 2013-14. The bulk power tariff will go up first and then the retail tariff will be adjusted.
The major jump in household gas and electricity prices will affect every household from small towns to big cities. And the increase of gas prices for industry would reduce the overall competitiveness of the manufacturing sector and will ultimately put a huge burden on them. Moreover, the export-oriented industries will suffer more as they compete against other countries to procure orders. In a chain affect, the higher price will increase the inflation rate, fares of all means of transport and production costs will all go up. It is the obligation of a government to provide relief to the ordinary citizens in their daily life and not to impose new burdens on them. It is evident the increase in price of energy products will hard-hit the lives of the common people. We strongly urge the government to shun the move to increase prices of energy.
