Public hearing begins

Rights, businesses oppose gas price hike

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Anisul Islam Noor :
The government is in a dilemma over the proposed gas price hike as it is essential for developing the gas sector in one hand, while rights groups and businessmen are strongly opposing the move in greater public interest.
The public hearing on the proposed price hike began at TCB building auditorium in city’s Karwan Bazar area on Sunday. The hearing will continue till August 18.
Businesses and rights groups expressed surprise in the public hearing on gas price hike at a time when gas distribution entities have proposed doubling the price despite making huge profit.
Bangladesh Energy Regulatory Commission (BERC) arranged the public hearing on the proposed price hike of Gas Transmission and Distribution Company Limited (GTCL).
The entity has proposed to increase transmission charge at Tk 0.3665 from existing Tk 0.1565 which is more than double from remaining rate.  
Participating in the hearing, Federation of Chamber of Commerce and Industries (FBCCI) President Abdul Matlub Ahmad asked not raise gas price within next one year as the industrial sector has been passing through different challenges.
Due to lack of gas connection and supply of quality electricity, foreigner and local entrepreneurs are not interested in new investment in the country, resulting in stock of huge idle money in the banks, he said.
Energy Adviser of Consumers Association of Bangladesh (CAB) Professor Shamsul Alam said, “We are paying higher gas price and BTCL is making huge profit in every year”.
Influence of gas price hike is vast on both industries and common people as they will be affected. So, it is not a fanny matter that distribution companies want to raise price and BERC meet their requirement in any way, he said.
Leader of CPB Ruhin Hossain, Zunayed Saki of Gonosanghati Andolon, former Petrobangla official Salek Sufi, among others, spoke in the hearing.
Sharifur Rahman, director finance of GTCL has answered different queries of the people participating in the hearing.
Less than a year, the BERC has taken initiative to hold public hearing for increasing gas price. On September 1, 2015, gas tariffs were raised by 26.29 per cent.
Firstly, BERC commence a public hearing on the proposal of GTCL.
Secondly, the hearing will discuss the proposals of six distribution utilities to increase the prices of natural gas at the consumer end.
And thirdly, the hearing on August 18 will argue in favour of Petrobangla’s proposal to raise the bulk price of the methane gas.
The distribution utilities are also seeking to raise the monthly gas tariffs for domestic consumers to Tk 1,200 from the current Tk 650 for double-burner users and Tk 1,100 from Tk 600 for the single burner users, said officials.
They are seeking to raise tariff on per cubic metre of gas for domestic metered-consumers to Tk 16.80 from Tk 7, they said.
The distributing utility companies intended to raise per cubic metre gas tariff for power plants to Tk 4.60 from Tk 2.82, for fertiliser factories Tk 4.41 from Tk 2.58, for captive power plants Tk 19.26 from Tk 8.36, for industries Tk 10.95 from Tk 6.74, for commercial users Tk 19.50 from Tk 11.36 and for compressed natural gas consumers Tk 49.50 from Tk 35, respectively.
The utilities also proposed to hike the gas price for CNG filling stations to Tk 49.50 per cubic metre from the existing tariff of Tk 27. But they did not propose the price of CNG for the consumers.
They are also pressing to raise the retail tariffs citing the ground that their profit margins fell since BERC began deductions from their profits to create an energy security fund.

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