Home ›› 25 May 2022 ›› Front
The Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) has urged the Prime Minister’s Office to suspend for now the proposed hike in prices of gas and electricity, pointing out that the move would raise the cost of doing business.
In a letter to the PMO on Monday, the FBCCI added that any further increase in gas and power prices will severely impact almost every sector in the country, especially the agriculture, industry, service and export-oriented industries.
The move will also put additional burden on lives and livelihoods of the people of Bangladesh, and create additional challenges against the country’s journey towards achieving SDG 2030, Vision 2041 and LDC graduation, the letter read.
Along with the PMO, FBCCI sent the letter to the State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Energy Adviser to the Prime Minister Dr Tawfiq-e-Elahi Chowdhury, and Principal Secretary to PM Dr Ahmad Kaikaus.
On May 18, the Bangladesh Energy Regulatory Commission (BERC) recommended raising the bulk electricity price by nearly 58 per cent. Previously, in March, the BERC proposed to increase gas prices by 117 per cent for industries.
In the letter, the FBCCI stated the cost of doing business in Bangladesh has been going up due to a multitude of factors, especially due to the global price hike of food items, raw materials used in different industries, high transportation costs, and foreign currency exchange rates.
Under such circumstances, the apex trade body submitted a 12-point proposal to ensure uninterrupted gas and electricity services at affordable prices, for the sake of accelerated economic development in Bangladesh.
The FBCCI urged the government to keep gas prices unchanged in all sectors for now considering the ongoing situation, and keep local rates stable through subsidies for gas imports.
Authorities must also tackle wastages and illegal connections on an emergency basis, and ensure international standard – including in management efficiency, cost minimization, safeguarding consumer interest, power production, distribution, and other services.
The FBCCI also recommended shutting down idle power plants, cutting duty and VAT on subsidised fuel such as coal, gas and furnace oil. They recommended shutting down power plants that are inefficient and expensive, while running only efficient and affordable ones.
This apex body suggested rationing power, and prioritising industries, agriculture and other essential services sectors for this emergency period. It added that the government should not hike electricity prices just because the fuel prices have recently gone up.
The government should cover the additional costs for power generation through subsidies. The FBCCI proposed using cutting edge coal-fired power plants for power generation, and emphasised the need for using local coal reserves for this purpose.
Besides, Bangladesh should focus more on buying electricity from the regional power market, and put emphasis on taking and implementing a BBIN project for hydroelectricity.
On the issue, FBCCI President Md Jashim Uddin said, “Bangladesh can achieve SDG-7 by the deadline if uninterrupted gas and electricity services can be ensured at affordable prices.”
