Kazi Zahidul Hasan :
Industrial and commercial consumers would have to pay an additional amount of Tk 2,500 crore a year as per the latest hike in power and gas price, according to state-owned gas and power distribution companies.
The estimate was made on the basis of the yearly consumption of electricity and gas by these two segments of clients.
It said that industrial and commercial clients, as per the new rates, would pay an additional Tk 2000 crore for gas and Tk 500 crore for electricity a year with effect from Tuesday.
Reacting on the price hike, industrial entrepreneurs said that the additional burden would further escalate the cost of doing business of local industries when they are already struggling to offset other internal and external challenges.
They said, such a hike in cost of doing business would make the local industries uncompetitive in the international market.
“The decision is not wise and timely because the hike will have a negative impact on industrial sector as well as economy,” Salam Murshedy, President of the Exporters Association (EAB) told The New Nation on Wednesday.
He said, industries are already under pressure from rising costs of production. So, further increasing gas and power tariffs would be new pressure on their shoulder. “Industrial clients will have to bear an additional cost of Tk 2,500 crore a year due to the latest hike in energy prices. It will raise the overhead cost of our products affecting competitiveness of local industries in the international market,” he added.
Frustrated by the government decision, Salam Murshedy further said that the electricity prices have increased manifold in the recent past but we are not getting its quality supply. Moreover, the continued load-shedding and low pressure of gas forced most industrial units to curtail their production significantly causing huge losses to the industrial entrepreneurs. To fight against the situation, many industrial units are producing electricity (captive power generation) using gas. But, unfortunately a 100 per cent gas price hike was made for the captive power generation. This will create further financial burden for them and helve their profit margin. Considering all adverse impact, he urged the government to review the decision to facilitate the industrial, trade and economic growth in Bangladesh.
The EAB leader also demanded of the government to ensure uninterrupted supply of gas and electricity to the industrial units for smooth production. “We don’t see any justification to raise gas and electricity prices when industrial units were facing an acute gas and power crisis”, Hossain Khaled, President of Dhaka Chamber of Commerce and Industry (DCCI) told The New Nation on Wednesday. According to him, the industrial units have to suffer 20-30 per cent production loss due to power and gas interruption.
When such a situation prevailing, the government has hiked energy prices a fresh putting further burden on the country’s industrial sector.
When asked, Hossain Khaled said, the industrial sector can’t compete with China, India or other regional competitors in the international market given the overhead cost of our products. Now, a further increase in their overhead cost will simply push it to the wall. It will severely affect the country’s industrialisation, investment and job creation.
