Anisul Islam Noor :Although the revenue generated by gas distribution companies is still higher than their expenses, they have sent proposal to the BERC again for gas price hike, say experts.They said the living cost of people will be increased if the proposed gas price hike is implemented. It would also have a chain effect on the prices of products and thereby decrease the purchasing power of people.”I don’t see any reason behind this proposal. It is unacceptable. We need to move away from the ad-hoc price adjustment system to a pricing policy that is transparent, predictable and market-based,” Prof. Shamsul Alam told The New Nation on Monday.The gas distribution entities have already submitted their proposal to raise gas price by 87.66 on an average to the Bangladesh Energy Regulatory Commission (BERC) recently.The business people are also concerned as the transport and production cost would be raised higher level if the proposed price is implemented. At the same time, a serious pressure might also be created both at local and global markets of Bangladeshi goods.Six gas distribution entities have submitted a uniform proposal raising the household gas price at Tk 1100 for single burner ovens and Tk 1200 for double burner ovens against the existing prices of Tk 600 and Tk 650 respectively.The distribution entities have asked the BERC to increase the per unit price of CNG from the existing Tk. 27 per unit to Tk. 49.50, thereby marking an 83 per cent increase.For electricity producers, the gas distributors have proposed to increase the per unit price by 63 per cent from Tk. 2.82 to Tk. 4.60. For captive power producers, the proposed increase is by 130 per cent from Tk. 8.36 to Tk. 19.26.The other proposed increases are for fertilizer (from Tk. 2.58 to Tk. 4.41 per unit ), industry (from Tk. 6.74 to Tk. 10.95 per unit ), commercial users (from Tk. 11.36 to Tk. 19.50 per unit), and household meter-based users (from Tk. 7 to Tk. 16.80 per unit).BERC Commissioner Dr Salim Mahmud told The New nation that they have received the proposal for increasing gas prices. “We have received the proposal. However, it doesn’t mean that the prices will be increased,” he said, adding that the prices will be adjusted through public hearings.Mashiur Rahman, Managing Director of Titash Gas Distribution Company Ltd said reporter that they have submitted a proposal to the BERC for increasing gas prices. He said that the company is paying a hefty amount as wage payments to its employees because of the new pay scale. Nizamul Hasan, Managing Director of Bakhrabad Gas Distribution Company Ltd, said that they have submitted a uniform proposal to increase gas prices. “The government will decide whether or not to increase the price. We have just submitted our proposal,” he added.About the proposed gas price hike, Dr M Tamim, a professor of the Petroleum and Mineral Resources Engineering Department of BUET, said that gas is under-priced in Bangladesh. “I have long been saying that the gas price for household ovens should be over Tk.1,000. A look at the neighboring countries will make it evident that we’re providing gas to households at the cheapest possible price,” he added.M Tamim said that the gas reserves of the country are dwindling fast. “The gas supply should be prioritized now,” he noted, adding that the government should think twice before giving new gas connections to non-productive sectors.On the other hand, Prof. Shamsul Alam, Energy Advisor of the Consumer Association of Bangladesh (CAB), said that the proposal for increasing gas prices is not logical. “This is unacceptable from the legal point of view,” he said, adding that the hike would have a chain effect on the prices of products and thereby decrease the purchasing power of the people.”The revenue generated by gas distribution companies is still higher than their expenses. I don’t see any reason behind this proposal. We need to move away from the ad-hoc price adjustment system to a pricing policy that is transparent, predictable and market-based,” he observed.The government had increased the prices of gas by an average of 27.56 per cent from September 1 last year.
