Businesses have urged the government to increase the gas supply to industries from households and CNG filling stations.
They have claimed that the abovementioned consumers are burning 19 per cent of the total gas supply, which has an annual value of $8 billion. But if half of this gas is supplied to industries, businesses will be able to earn 4-5 times higher than the figure in foreign currency.
Making the remarks at a press conference in the capital on Monday, Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon said, “Households and CNG stations can be operated on LPG. But our machinery is not capable of this feat.”
“We need natural gas. But due to the low supply, our production comes down to 40 per cent. If the government supplies us with just $2 billion worth of gas from households and CNG stations, we can earn $8 billion through exports.”
However, households have also been facing severe gas supply shortage for the last two months.
Lucky Rani, a resident of the capital’s Moghbazar area, has been making food items for her online business. She has been facing the gas crisis recently, which is hampering her production capacity.
She cannot even make breakfast and lunch for her family members as gas is not available from the morning to the afternoon.
Talking to The Business Post on Monday she said, “I received an order online, and I have to deliver it within 24 hours. But nowadays, I fail to prepare food for myself due to severe gas shortage. How will I make food for my customers?”
Like Lucky, most of the gas users in Dhaka, Narayanganj, Gazipur, Ashulia, Savar, Dhamrai, Narsingdi, and Munshiganj are facing the same situation. Consumers say that they are paying the bill without using gas.
Mentioning that the government should consider the proposal, Khokon said, “Households are burning 13 per cent gas and 6 per cent CNG. They [households] could easily burn LPG.”
The price of gas used by large, medium, small, cottage and other industries was hiked from Tk 11.98, Tk 11.78, and Tk 10.78, respectively to Tk 30 for all last year.
Khokon said that the government should sit with them to solve the issue. Petrobangla failed to address the gas issue.
“I also call upon the government to reduce the gas prices to previous level as the authorities have failed to ensure uninterrupted gas supply.”
The country has nearly 4,000 million cubic feet per day (mmcf/d) of gas demand, but the government is able to produce nearly 2,050mmcf/d of gas. Besides, 500 mmcf/d of gas came through long-term LNG contract with Qatar and Oman.
The government hiked the gas price up to 179 per cent in the early of last year citing increase supply through LNG import from the spot market. But due to the forex reserves shortage, the initiative didn’t work.
Industry insiders said that though they are paying high price of gas from January 2023, most of the time, gas pressure was zero.
Now the factories are continuing operation through diesel-based generator, which is costlier.
Khokon said, “The government asked to use LPG, but our generator is not supporting to burn gas. We don’t have any option except natural gas.”
“Due to the gas supply shortage, apparel manufacturers are continuing production through raw materials’ import. In that case, vale addition stood at 20-25 per cent. But if we [textile millers] could continue production and able to supply to the manufacturers, value addition will stand 65-70 per cent.”
