Staff Reporter :
Petrobangla will submit a proposal to Bangladesh Energy Regulatory Commission (BERC) for public hearing on gas price hike after the Eid-ul-Azha.
Petrobangla Chairman Professor Hossain Monsur said, “We drafted a proposal on hike-in-price and sent it to the ministry for their decision. The ministry sent back the proposal with some recommendations.”
He, however, did not mention the date for sending the proposal to Energy Regulator.
The ministry has proposed for the highest 122.22 percent hike on domestic use of gas. As per proposal, for two burners, the proposed price is Tk 1000, which is now Tk 450; for single burner gas cooker, the proposed hike is Tk 850, which is now Tk 400. The hike is little over 122 percent.
It also proposed to raise the price of 1000 cubic feet gas in domestic gas lines by 60.68 percent i.e. Tk 235 from Tk 146.25.
Professor Monsur said, “Gas prices in our country are lower compared with other countries. The gas distribution companies in our country are suffering losses due to this. That’s why we must increase the price.”
Defending the proposed increase in the rent for domestic gas lines, The Petrobangla chief said, “Gas price needs to be rationalised since rural customers buy gas cylinders at four times higher than the rent urban customers pay.”
The second highest hike has been proposed for captive power (private industrial power plants) by 102.94 percent i.e. Tk 240 for a thousand cubic feet of gas.
A 33 percent increase has been proposed for the price of CNG, raising the price of every one thousand CFT to Tk 1132.67; for industrial use 32.6 percent, raising it to Tk 220, for commercial gas by 30.55 percent to Tk 350, for fertilisers 9.71 percent to Tk 80, gas for power generation by 5.24 percent to Tk 84 and the tea-garden supply by 20.55 percent to Tk 200.
Last time gas prices were revised was in August 2009 during the past Awami League government. All retail prices apart from brick kilns and CNG were raised.
Asked what impact this might have on the economy, Economist Zayed Bakht said, “The price has not been raised in a while. I think the government wants to make a balance.”
“But it would have been better if they raised it gradually. The sudden rise will affect the price levels.”
He said that he believed the decision was taken since inflation was at a tolerable level at present.
