Kazi Zahidul Hasan :
Bangladesh Energy Regulatory Commission (BERC) has decided to increase gas price as per the proposals of state-run gas transmission, distribution and marketing companies.
The country’s energy regulator will hold hearings from March 11 to March 14 on the fresh gas tariff hike proposals.
“We will hold a four-day public hearings over the tariff hike proposals of state-run gas companies,” a senior BERC official told The New Nation yesterday on condition of anonymity.
He said, gas distribution companies recently submitted their proposals to increase gas price for all kinds of consumers as the government had initiated expensive (1,000 million cubic feet) liquefied natural gas (LNG) imports to increase gas supplies.
Sate-owned oil and gas company Petrobangla started supplying the imported LNG to the national gas network from August 18 from the Moheshkhali floating LNG terminal.
“The BERC has moved for fixing a new gas tariff considering proposals of state-owned gas distribution companies. They made the tariff hike proposal for blending the price of imported LNG with locally produced gas,” said the BERC official, adding, ” BERC last received a similar proposal from the state-owned gas distribution companies, but it refrained from hiking gas tariff considering adverse public reaction in an election year.”
He said the government would need to give subsidy worth around Tk 3,100 crore in the current fiscal for not readjusting the gas tariff.
Recently, Gas distribution companies including Titas Gas Transmission and Distribution Company Ltd (TGTDCL), Bakhrabad Gas Distribution Company Ltd (BGDCL), Jalalabad Gas Transmission and Distribution Company Ltd (JGTDCL), and Karnaphuli Gas Distribution Company Ltd (KGDCL) in their unified proposals sought for an average 66 per cent hike in natural gas tariff for all types of consumers. Titas wanted to raise tariff for gas-fired power plants to Tk 7.66 per cubic metre from the existing Tk 3.16 (142 per cent increase), for fertiliser factories to Tk 7.00 per cubic metre from the existing Tk 2.71 (158 per cent increase) for industries to Tk 15.00 per cubic metre from existing Tk 7.76 (99 per cent increase) and for captive power plants to Tk 15.70 from Tk 9.62 (63 per cent increase). For the CNG stations, the price of compressed natural gas (CNG) has been proposed to Tk 40 per cubic metre from the existing Tk 32 (25 per cent increase). For the household consumers, natural gas tariff has been proposed to Tk 1,000 for single burner stove from the existing Tk 750 (33 per cent increase) while Tk 1,200 for double burner stove from Tk 800 (50 per cent increase).
Titas appealed for readjusting the gas tariff to BERC on January 29 this year. Terming the BERC’s move anti-people, Energy Adviser of the Consumers Association of Bangladesh (CAB) Dr Shamsul Alam said, a fresh increase in gas tariff will be burden for the consumers. “We have already filed a petition with the BERC urging it not to accept the tariff hike proposals of gas distribution, transmission and marketing companies,” said Dr Shamsul Alam.
He also said that the gas distribution companies should enhance their efficiencies by checking gas theft. “If the theft was stooped, the government will not require hike in gas tariff afresh.”
In 2017, the BERC raised the natural gas tariff by 22.70 per cent for all types of consumers in phases.
