Fresh rise in gas tariff will be disastrous

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NEWS reports said that the government is working on a new proposal to increase gas tariff by 80 percent to up to 150 in some cases at a time people are paying the highest rates which were latest raised by September last year. The Dhaka Chamber of Commerce and Industry (DCCI) has joined other public bodies and industrial organizations yesterday calling the government to stop the move which will make use of gas beyond the reach of households while escalating the cost of doing business to wane the competitiveness of the country’s exports. We also ask the government to be sensible in taking such critical decision.  The proposals came from Gas Distribution Companies at a time when they are earning profits and the government subsidy to gas marketing is not significant. It appears that the Energy Regulatory Commission (ERC), which is an independent body by names hake, is scheduled to start hearing on the proposal from August 7. We know that these are all routine work to make the people fool when the decision has already been made to raise gas price again. Such hearing with participants from government bodies makes no sense. The new proposal calls for a fresh rise of Tk 1.83 per cubic meter of gas for fertilizer production which is now Tk. 2.58. It has proposed Tk. 16.80 per cubic meter for domestic use from Tk 7 now, Tk 19.26 per cubic meter for captive power plants, which is Tk 8.36 now. The proposed 140 percent tariff rise is simply unacceptable. We know that this is a government, which is not sensitive to people’s suffering and always go by its own decision. Otherwise how gas prices can be raised so frequently and every time at such a huge margin? A people’s government can’t be so heartless to people’s suffering and to the disadvantage of the nation’s trade and commerce. Such move is also highly discouraging to new investment and without enough investment new job creation and income generation will suffer. That means the high cost of energy will bring setback not only to household level but also to country’s industrial growth to attain the middle-income status by 2021. People can’t accept the logic of another rise in gas price in nine months. We know that the bulk of the electricity supply come from private power producers and higher tariff means another boost to their profit. The government is also reportedly working to create additional fund to pay staff salary and other allowances as per the new pay scale which appears a heavy burden. More funds are also required to clear duties and taxes to National Board of Revenue (NBR); which electricity users routinely pay with gas bills but the Gas Distribution Companies appear to have defaulted to pay. Where this money is going?We know such questions are not be asked. But a time will come when the government will find the financial burden created through abuse of power that our people cannot bear any more.

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