ANOTHER spell of gas tariff hike is likely as Petrobangla is working on a proposal for public hearing on gas price hike after the Eid vacation. This newspaper reported on Thursday that Petrobangla sent a proposal to the Ministry on hikes-in-the price of gas. The report said, Petrobangla proposed the highest 122.22 percent hike on domestic use. As per the proposal, two-burner gas cooker will cost Tk 1000, which is now Tk 450; for single burner, it will be Tk 850, now at Tk 400.
Petrobangla argued that the rise is needed to offset huge losses that the gas distribution companies incur annually. Petrobangla Chief said, gas prices in our country are lower compared with other countries’ for which gas distribution companies make losses. Besides, gas price needs to be rationalised since rural customers buy gas cylinders at four times higher than the rent urban customers pay, he said.
Whatever the argument for the future rent, the woe of the end users might not be considered at all. Therefore, it is a matter of concern for the consumers, as the actual burden of the increase in tariff will go to them. Thus, the move to raise the new tariff structure only for the gas distribution companies is inconceivable.
Patrobangla also proposed a hike by 102.94 percent for captive power (private industrial power plants) for a thousand cubic feet gas. A 33 percent increase has been proposed for the price of CNG, for industrial use 32.6 percent, for commercial gas by 30.55 percent, for fertilisers 9.71 percent, gas for power generation by 5.24 percent and the tea-gardens by 20.55 percent. Gas prices were last revised upward in August 2009 with all retail prices apart from brick kilns and CNG. The next hike must have a chain impact on transport which will ultimately result in a rise in kitchen market priced leaving the general people hard hit who are already reeling under the growing cost of living.
It is not obvious, how price hikes help recuperate the loss because low price is not the only cause of the loss and price hike is not the only remedy. The other factors that raise the cost of gas like corruption, inefficiency, mismanagement and politicization of the energy sector above all, system loss through unauthorized connection should be considered.
To satisfy the donors’ demand, reducing government’s subsidy in power and energy sector has ultimately inflicted the end users. The proposed hike may further fuel inflation in chain reaction as it will increase production cost, and thus the price of essentials will push up. It may also hamper investment and employment.
More than 100% hike in gas price by one stroke will be considered most daring in any country, but not in Bangladesh. Here, the people are forced to pay for inefficiency of the government.
