THE government move to hike the price of natural gas just seven months after a similar rise in its price has come as a big shock to consumers both at household and industrial level. Prtrobangla claims it is buying gas at higher price from foreign gas producing companies and local gas distribution companies have no option but to raise gas price to cut loses. So it has sent a proposal to the Energy Regulatory Commission (ERC) to hold hearing to raise the gas price at users’ end.
The government raised gas prices by 26.29 percent on an average at consumer’s end at the middle of last year and the renewed move to hike gas price again is bound to create serious panic on household consumers particularly at low-income level. Small and medium industries would similarly face new threats to keep their products competitive. Export based industries such as garment and textile manufacturing would face serious troubles to retain markets abroad. So we must say that the government should think twice before pressing another price hike of gas weighing its negative impact on overall productivity at industrial and household level.
It appears that public gas distribution companies are earning profit at the moment and part of the higher buying price of gas may be met from such profit. It is a bad practice that the government would resort to raising utility prices at will any time even more than once in a year. It just creates panic among users. Some insiders say that the government has planned the price hike to reduce waste by making gas costlier. However this can’t be a reasonable argument because there are many kinds of wastes including corruption and misuse of resources by vested interest groups that need to be reign in first.
News reports galore on such waste and misuse by politicians and trade union leaders. As per reports they have even set up long gas pipelines at Narayangonj and other industrial belts giving unauthorized connection and collecting unaccounted gas bills from such users. It is not also unknown to Energy Ministry and Petrobangla and we believe that by controlling such waste and unaccounted gas bills the authorities will be able to collect more revenue than from a fresh price hike.
In our view ERC should hold hearing on where and how gas is being misused and wasted by such vested interest quarters who are employees of the gas distribution companies and how it may be effectively stopped. Corruption and misuse of resources are destroying the organization forcing its cascading affects on gas users, which is totally unfair and unacceptable. The government should take up overhauling of the organization instead of penalizing the users. Frequent price hike can’t a remedy from any sensible government.
