The Bangladesh Energy Regulatory Commission (BERC) is on the path of increasing prices of gas in new industries. There is a hint that the price will be increased from Tk. 30 to Tk. 40 to Tk.45 taka. It is known that the announcement may come in April.
The source of the Bangladesh Energy Regulatory Commission (BERC) claimed that it is almost certain that the price is increasing to some extent. However, the issue of how much taka will be increased, whether it will increase only in new industries or in existing industries as well, has not been fully finalized. Discussions are underway on several price formulas. Discussions are underway on a formula to reduce prices if the international market price decreases in one formula. In addition, discussions are ongoing on the issue of existing industries.
Petrobangla has proposed to increase the prices of new and promised customers while keeping the prices of existing customers unchanged. Half of the gas bills of the promised customers (already approved) will be at the existing rate, half at Tk. 75.72, and the gas price for new industries and captives will be increased from Tk. 30 and Tk. 31.75 to Tk. 75.72 respectively. In addition, if the existing industries use more gas than the approved rate, the additional gas will be fixed at 75.72 taka.
BERC held a hearing on Petrobangla's price increase proposal on February 26. Petrobangla said in its proposal that if the price is not increased, there will be a deficit of about 16 thousand crore taka per year. There was a storm of criticism over Petrobangla's proposal. In the hearing, businessmen and leaders of business organizations also raised strong objections. Especially in the industry, everyone is against setting two types of prices. But even then, it is known that the executive branch and BERC are walking on the path of increasing prices.
Are prices increasing or not? BERC Chairman Jalal Ahmed refused to comment on this issue. In response to another question, the BERC Chairman told Barta24.com, "If the gas price is not increased, an order can be given any day. If the price is increased, it will not be reasonable to announce it before Eid. However, no decision has been finalized yet."
In response to a question, the BERC Chairman said, "There is a policy decision involved here. How much subsidy the government will give is also a consideration here."
Many people objected to the two types of prices in the industry during the hearing. They said that if the existing industry is charged at the existing price, and if additional prices are set for new industries, it will create unequal competition. What does BERC think about this? In response, the Chairman said, "We will analyze the opinions in the commission meeting. Then a decision will be made. Surely, a decision will be made after considering everything."
BERC, Petrobangla and distribution company officials faced fire from the CAB, business organizations and industrial owners during the hearing on gas price increase. Many questioned BERC's role in holding the hearing, calling the proposal unreasonable. This is the first time that unprecedented protests have occurred during the hearing.
In the hearing, BKMEA President Hatem Ali said, "I humbly request you to stop the hearing of this pointless and unreasonable proposal. If the price is increased from Tk. 30 to Tk. 75, no new industries will grow, the industrial sector will be destroyed. I hope you will not conspire to destroy the industrial sector."
BTMEA President Shawkat Aziz Russell said, "We are trapped by investing. We cannot close the business because we have bank loans. Otherwise, we would have closed it long ago. The Tk 30 we are paying now is too much. We are not getting gas, and you have come up with a proposal to increase the price. Do you want to hand over the business to India? Please do not hand over the industry to India."
Petrobangla buys gas from several sources. The state-owned Sylhet Gas Field Company and Bangladesh Gas Field Company are paid about Tk. 28 per thousand cubic feet, and Bapex is paid about Tk. 112.
Chevron Bangladesh, a multinational company that extracts gas from the country's mines, is paid 2.76 dollars per thousand cubic feet of gas, while Tallo is paid $2.31. On the other hand, in the first 7 months of the 2024-25 fiscal year, the price of LNG imported from Qatar was 10.66 dollars and the price of LNG imported from Oman was 10.09 dollars. Due to decades of stagnation in oil and gas exploration, Bangladesh has had to resort to imports. Energy experts believe that the situation could become more dire in the future if exploration activities are not strengthened.