Anisul Islam Noor :
The government plan to increase gas price again despite warnings that it would further boost the production cost.
In line of the government plan, Bangladesh Energy Regulatory Commission (BERC) has set mass hearing on gas price hike proposal from June 11.
Earlier, the Commission raised the gas prices by about 22 per cent on an average in two phases, from March 1 and June 1 in 2017. But the gas distribution companies now seek
an average 75 per cent hike, from Tk 7.39 per cubic metre to Tk 12.95, sources said.
Being directed by the Energy Division, the six state-run gas distribution companies submitted proposals to the BERC in March this year for the fresh hikes in gas prices.
However, the gas distribution companies did not seek any hike for cooking burners used in households.
In their proposals, the gas distribution companies argued that their supply costs would go up due to import of expensive Liquefied Natural Gas (LNG) for increasing gas supplies by 28.32 million cubic metres per day.
The companies also sought hikes for grid-tied power stations by 206 per cent, Tk 10 from Tk 3.16 per unit, for CNG-filling stations by 25 per cent, Tk 40 from Tk 32 per unit, for fertilizer factories by 372 per cent, Tk 12.80 from Tk 2.71 per unit, for industrial boilers by 93 per cent, Tk 15 Tk 7.76 per unit, and for captive power plants in industries by 66 per cent, Tk 16 from Tk 9.62 per unit.
In other categories, the companies also sought gas price hike for tea estates by 73 per cent, Tk 12.80 from Tk 7.42 per unit.
In the wake of no significant success in oil and gas explorations, the government has planned to increase gas supplies from imported LNG.
Gas supplies from indigenous fields have declined from its peak 77.88 mmcmd to 76.47 mmcmd against a demand of more than 105 mmcmd.
Energy Adviser of Consumers Association of Bangladesh Professor Shamsul Alam said that the authorities concerned should have taken measures to check gas theft and wastage before importing the LNG and raising the gas prices.
The proposed gas price hikes for the LNG import would burden the ordinary citizens with increased prices of electricity and other goods and services as did almost 50 per cent gas price hikes in three phases between September 2015 and June 2017, he said.
The first floating storage and regasification unit has already anchored near Maheskhali island and is set to begin supply of natural gas at a rate of 14.16 mmcmd towards the end of May.
US company Excelerate Energy will be facilitated by its floating storage regasification unit (FSRU) for the next 15 years while the state-run Petrobangla will import LNG from Qatar, Oman and other sources under separate mid-to-long-term contracts.
The government plan to increase gas price again despite warnings that it would further boost the production cost.
In line of the government plan, Bangladesh Energy Regulatory Commission (BERC) has set mass hearing on gas price hike proposal from June 11.
Earlier, the Commission raised the gas prices by about 22 per cent on an average in two phases, from March 1 and June 1 in 2017. But the gas distribution companies now seek
an average 75 per cent hike, from Tk 7.39 per cubic metre to Tk 12.95, sources said.
Being directed by the Energy Division, the six state-run gas distribution companies submitted proposals to the BERC in March this year for the fresh hikes in gas prices.
However, the gas distribution companies did not seek any hike for cooking burners used in households.
In their proposals, the gas distribution companies argued that their supply costs would go up due to import of expensive Liquefied Natural Gas (LNG) for increasing gas supplies by 28.32 million cubic metres per day.
The companies also sought hikes for grid-tied power stations by 206 per cent, Tk 10 from Tk 3.16 per unit, for CNG-filling stations by 25 per cent, Tk 40 from Tk 32 per unit, for fertilizer factories by 372 per cent, Tk 12.80 from Tk 2.71 per unit, for industrial boilers by 93 per cent, Tk 15 Tk 7.76 per unit, and for captive power plants in industries by 66 per cent, Tk 16 from Tk 9.62 per unit.
In other categories, the companies also sought gas price hike for tea estates by 73 per cent, Tk 12.80 from Tk 7.42 per unit.
In the wake of no significant success in oil and gas explorations, the government has planned to increase gas supplies from imported LNG.
Gas supplies from indigenous fields have declined from its peak 77.88 mmcmd to 76.47 mmcmd against a demand of more than 105 mmcmd.
Energy Adviser of Consumers Association of Bangladesh Professor Shamsul Alam said that the authorities concerned should have taken measures to check gas theft and wastage before importing the LNG and raising the gas prices.
The proposed gas price hikes for the LNG import would burden the ordinary citizens with increased prices of electricity and other goods and services as did almost 50 per cent gas price hikes in three phases between September 2015 and June 2017, he said.
The first floating storage and regasification unit has already anchored near Maheskhali island and is set to begin supply of natural gas at a rate of 14.16 mmcmd towards the end of May.
US company Excelerate Energy will be facilitated by its floating storage regasification unit (FSRU) for the next 15 years while the state-run Petrobangla will import LNG from Qatar, Oman and other sources under separate mid-to-long-term contracts.
