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Concern over Petrobangla’s proposal on gas price hike

Star Business Report
Businesspeople and other stakeholders expressed their concern at an open discussion in Dhaka yesterday that further gas price hike will seriously hamper investment and industrial growth.
Opposing the Petrobangla’s (the state-owned oil and gas exploration corporation) proposal to hike the price of gas, the representatives of different chamber and trade bodies, and consumers' associations said all industries would suffer in consequence of the gas price hike.
Bangladesh Energy Regulatory Commission (BERC) organised the open discussion to hear opinions of different stakeholders on the proposed gas price hike.
At the discussion Aftab UI Islam, a representative of the Federation of Bangladesh
Chambers of Commerce and Industry (FBCCI), said, "Many entrepreneurs are faced with the problem of low pressure or unavailability of gas. So, it will not be justifiable to hike gas price".
Secretary General of Bangladesh Textile Mills Association (BTMA) GKM Towfique Hassan said export of RMG products will face serious problem as a result of imposing a Tk 5,00,000 licence fee for operating captive power plants.
He said BERC has already started to send letters to the textile and garment factory owners, urging them to receive the licences from the BERC office in exchange of payment ofTk 5,00,000.
"The fee is too high for the factory owners, as the production cost has already gone beyond the capacity of many owners due to recent increase
in the cost of doing business," he said, adding that many factory owners across the country are largely dependent on captive power plants due to interrupted power supply in the factories.
He said the factory owners have to pay a lot of money to gas and power supplying authorities as connection fees during the setting up of the factories." Charging of such fees is antiindustry," he added.
A representative from the Consumers Association of Bangladesh (CAB) said the consumers are not in a position to tolerate any further rise in gas price." Industries will face serious crisis due to such move," he said.
Representatives of Dhaka Chamber of Commerce and Industry (DCCI) and Metropolitan Chamber of Commerce and Industry (MCCI) also echoed the views of
these stakeholders on the issue.
One representative from the Ministry of Energy and Mineral Resources urged the officials of both Petrobangla and BERC to take decision in consonance with the opinion of the stakeholders.
"BERC should give a second thought on charging Tk 500,000 as licence fee," he said, adding that government wants to control gas consumption through enhancing the price.
Jalal Ahmed, chairman of Petrobangla, proposed gas price hike to Tk 93.73 per million cubic feet (MCF) for power (PDB, IPP and SPP) from its existing rate of Tk 73.91 per MCF. The Petrobangla also proposed price hike to Tk 93.73 per MCF from its Tk 63.41 per MCF for fertiliser factories, while Tk 182.25 per MCF from existing Tk 105.59 for captive power plants, Tk 182.25 per MCF for industry from existing
Tk 148.13 per MCF, Tk 182.25 for Tea-Estate from Tk 148.13 per MCF, Tk 291.59 per MCF for commercial usage from existing Tk 233.12 per MCF have been proposed.
In case of domestic usage, Tk 550 from existing rate of Tk 350 for single burner and Tk 600 from existing Tk 400 for double burner have been proposed, Petrobangla chairman said.
Chairman of BERC Ghulam Rahman said there would be a public hearing on the proposed price hike of gas on September 15 to know the public opinion on the issue.
"Petrobangla must prove justification for the proposed gas price hike at the public hearing, otherwise the price will not be increased," Ghulam Rahman said.
He urged all people concerned to contact with the BERC to register their names to attend at the public hearing.