New gas prices to be announced today

The Bangladesh Energy Regulatory Commission (BERC) is set to announce a new gas tariff at the consumer level today.

“We’ll announce the new gas price at 3:00pm,” Mohammad Abu Farooq, the BERC technical committee chairman on gas prices, told The Business Post on Saturday evening.

According to the rules, the BERC needs to announce the price adjustment within 90 days of the public hearing. “That is what we’re doing,” said Farooq.

However, the BERC had earlier said that the new gas price would be adjusted in the forthcoming national budget by calculating subsidies on LNG imports. But the new tariff will be declared before the budget.

Farooq was reluctant to comment on why gas prices were being adjusted before the budget announcement.

In January, Petrobangla and six of its gas distribution companies applied to the BERC to increase gas prices by 117 per cent. The BERC held a public hearing on the issue from March 19 to 22.

On the other hand, the BERC’s technical committee recommended a 20 per cent hike in gas prices, which drew flak from different political parties, businessmen and social organisations.

Consumers Association of Bangladesh (CAB) Energy Adviser Professor Shamsul Alam said gas distribution companies are still profitable. 12-14 per cent of gas is being theft every year. If these can be stopped, there is no need to increase the price.

A member of the BERC told Business Post that there was pressure from the government on the BERC to expedite the announcement of gas prices. Therefore, last Thursday, the Prime Minister’s energy adviser Tawfiq E Ilahi Chowdhury with BERC officials had a day-long meeting. It was decided to increase the gas price for the residents a little less than the adjustment. The member did not want to comment on the percentage increase

It is learned that Tk 6,000 crore has been earmarked in the forthcoming national budget as a subsidy for LNG import. Apart from this, if more money is needed, it will be provided by the government. However, the Petrobangla says that even before the government announced a subsidy on LNG imports; it could not meet the demand. As a result, Petrobangla has come under a lot of financial pressure.

In 2019, the gas price increased to Tk 4.45 per cubic meter on electricity, fertilizer is, Tk 4.45, captive power is Tk 13.75, and industrial Tk 10. 60, tea garden Tk 10.60, CNG is Tk 35, the household is Tk 12.60, the hotel is Tk 23, cottage industry is Tk 18.