HC stays 2nd phase of gas price hike for 6 months

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Staff Reporter :
The High Court (HC) on Tuesday stayed for six months the effectiveness of the second phase of the gas price hike.
The court also questioned the legality of the government’s decision to increase the gas price in two phases.
The court also issued a rule asking the Bangladesh Energy Regulatory Commission to explain why the public notification for increasing the gas price from March 1 and June 1 should not be declared illegal.
Chairman and the Secretary of the Energy Regulatory Commission have to comply with this rule within four weeks.  
The HC bench of Justice Moyeenul Islam Chowdhury and Justice J B M Hassan passed the order after primary hearing on a writ petition filed by the Consumer Association of Bangladesh (CAB) challenging the legality of the mass notification of the government about the gas price hike.
Advocate Mohammad Saiful Alam took part in the hearing on behalf of the CAB, while Deputy Attorney General Motahar Hossain Saju for the State.
On February 23, Bangladesh Energy Regulatory Commission (BERC) raised gas price by 22.7 percent and decided to implement the hike in two phases.
As per the new rate, households using double burners have to pay Tk 800 each from March 1 compared with Tk 650, while those using single burners have to pay Tk 750 each against Tk 600. The prices would be increased again on June 1 by another Tk 150 for each gas stove.
The transport owners have to pay Tk 38 for per cubic meter CNG (Compressed Natural Gas) from March 1 and Tk 40 from June 1, read the notification. Besides, the price would be hiked five to 50 percent in two phases in the energy production, fertilizer, industry and trade sectors, the notification also read.
The stay order for six months was issued on the effectiveness of a portion of the government notification for increasing the gas price from June 1 to Tk 950 and Tk 900 respectively for double burner and single burner respectively.
Architect Mubassher Hossain, Convener of National Complain Handling Committee of CAB, submitted the petition on February 27 saying that the authorities could increase the gas price once a year under the Bangladesh Energy Regulatory Commission Act 2003, but the authorities increased the gas price twice this year.
Section 34(5) of Bangladesh Energy Regulatory Commission Act 2003 said, “Tariff determined by the Commission shall not be revised more than once in a fiscal year, unless there in change in the prices of energy including any other changes.”
Counsel for the CAB said that the government on February 23 raised gas prices for all consumers by 22.7 percent and decided to implement the hike in two phases. The court stayed the second phase of price hike for six months and issued rule.
Legality of Section 34(6) of Bangladesh Energy Regulatory Commission Act 2003 has also been challenged in the writ petition. The court also issued rule on it, said the counsellor.
Some political parties and business organizations also demanded cancellation of the decision of price hike. Left-wing political parties on Tuesday observed half-day strike in the capital city with the same demand.
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