SGCL fails to justify gas price hike at BERC hearing 

The state-run Sundarban Gas Company Limited (SGCL) could not come up with a logical reason to increase gas prices at the consumer level during Tuesday’s hearing. 

Also, its Managing Director Tofail Ahmed failed to answer questions asked by stakeholders at the
hearing arranged by Bangladesh Energy Regulatory Commission (BERC) in the capital.

Stakeholders argued that gas prices should not be raised. They also said the hearing should be cancelled.

The BERC technical committee recommended increasing household gas prices for a double-burner stove from Tk 975 to Tk 1,060 and for a single-burner one from Tk 925 to Tk 990.

SGCL, on the other hand, proposed increasing gas prices from Tk 925 to Tk 2,000 for a single-burner stove and
from Tk 975 to Tk 2,100 for a double-burner one.

The company distributes gas in the south-western Khulna and Jashore regions. According to its data, it distributed 956 mmcfd gas in the last fiscal year and earned Tk 59 crore, making a profit of Tk 12 crore.    

At the beginning of the hearing, BERC Chairman Md Abdul Jalil said, “The gas distribution companies should have included the social impacts of the price hike in their proposals, but they did not.”

Kamran T Rahman, a senior vice-president at the Metropolitan Chamber of Commerce and Industry, said the price hike proposals had frustrated the business community.

The BERC technical committee recommended increasing gas prices per cubic metre for power companies
from Tk 4.44 to Tk 5.34, for captive from Tk 13.85 to Tk 15.5, for fertiliser companies from Tk 4.44 to Tk 5.34, for the tea industry from Tk 10.6 to Tk 12.65, for commercial connections from Tk 23 to Tk 27.6, and for CNG refuelling stations from Tk 43 to Tk 49.5.

Besides, it recommended increasing gas prices per cubic metre for metered stoves from Tk 12.6 to Tk 18.