BERC to take comments on gas price hike until March 5
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Photo: Collected
Written comments or objections can be given until March 5 on the hearing on gas price hike. Anyone with specific comments, even those who participated in the hearing, can give their opinions.
The Bangladesh Energy Regulatory Commission (BERC) held a hearing on gas price hike on February 26. BERC, Petrobangla and distribution company officials faced fire from CAB, business organizations and industrial owners during the hearing on gas price hike. Many questioned BERC's role in holding the hearing, calling the proposal unreasonable. This is the first time that unprecedented protests have taken place at the hearing.
It has been proposed to increase the price of gas supplied to industrial boilers and generators (captive) of industrial factories from Tk. 30 and 31.75 respectively to Tk. 75.72. Although the price of existing customers was said to remain unchanged, Petrobangla set half the gas bill for the excess use of the permitted load and the half for the promised customers (already permitted) at the existing rate, and half at Tk. 75.72.
On behalf of the CAB, energy expert Dr. M Shamsul Alam said that the proposal to increase the price of gas is terribly anti-people. It was not logical for the commission to accept this hearing. They should have canceled this proposal in the commission meeting itself.
He said, the way imports are being talked about here, by importing not only fuel but all products, the country is being made dependent on imports. There can be no hearing on this proposal. It must be stopped. We request that this hearing be canceled now. If we do not get a remedy here, we will have to protest; please do not force us to protest.
After the hearing, BERC Chairman Jalal Ahmed said, yes, this is correct, two types of price discrimination can arise in the industry. Many people demanded that the hearing be stopped; our point is that we heard all sides today. A decision will be taken based on everyone's opinions.
In the hearing, BKMEA President Hatem Ali said, "I humbly request you to stop the hearing of this absurd proposal. If the price is increased from Tk. 30 to Tk. 75, no new industries will come; the industrial sector will be destroyed. I hope you will not conspire to destroy the industrial sector." BCI President Anwar Ul Alam Chowdhury Parvez said, "I don't think any professional person can make this proposal. Behind it, some amateur people and vested interests are working to close the country's industries. If this decision is implemented, the country's industrial sector will be destroyed. The country will become completely dependent on imports." Former FBCCI President Mir Nasir Hossain said, "What message are we sending to domestic and foreign investors by proposing to increase the price of gas from Tk. 30 to Tk. 75?" What do you mean, stop industrialization, there is no need for new industries. Please don't increase the price of gas. This will have a serious impact." BTMA President Shawkat Aziz Russell said, "We are trapped by investing." I cannot close the business because I have bank loans. Otherwise, I would have closed it long ago. The Tk. 30 I am paying now is too much. We are not getting gas, and you have proposed to increase the price. Do you want to hand over the business to India! Please do not hand over the industry to India.
The BERC Technical Committee said in its evaluation report that there is a 15 percent VAT at the LNG import level and another 15 percent at the consumer level. If the issue of VAT is resolved twice, the cost of LNG import will be reduced by TK. 7.34 per cubic meter. This will reduce the deficit.
If the new tariff is determined, if the consumers in those two categories are not interested in taking up new connections, or if the promised customers do not use more than half of the approved load, and if the existing customers do not use more than the unapproved load, then Petrobangla will not earn the desired revenue, the Technical Committee commented.
In its proposal to increase the price of Petrobangla, it said that the current import price of LNG is Tk. 65.70 per cubic meter. Adding VAT-tax and other charges, it stands at Tk. 75.72. As a result, to sustain this sector, the gas price gap will have to be reduced. If LNG is imported as planned, Petrobangla will have a deficit of about Tk. 16,161.71 crore in the current fiscal year.