BTMA against further gas price hikes

The Bangladesh Textile Mills Association (BTMA) has demanded that gas prices not be increased any further to sustain the country’s economic development.

The BTMA said in a press release issued on Tuesday that it has been informed that the Finance Ministry plans to raise the gas tariff to Tk 28 per cubic meter from Tk 13.85, nearly doubling the current price.

The textile industry is already mired by a severe economic crisis as it recovers from the Covid pandemic. On top of that, the industry is facing a critical situation due to the Russia-Ukraine War and the subsequent price hike of textile raw materials.

As such, if the government increases the price of natural gas, it will be disastrous for the country’s overall economy, BTMA states.

At a public hearing organized by the Bangladesh Energy Regulatory Commission (BERC) in March, BTMA and other stakeholders strongly opposed a proposed decision to increase gas prices.

Despite their objection, the Finance Ministry continues planning to instigate the gas price hike, which will be detrimental to the textile industry’s growth and counterproductive to sustaining competitiveness in the global market.

Earlier, BTMA president Mohammad Ali Khokon said that they have to operate captive power plants having 1700 MW capacity to ensure uninterrupted power supply to their mills against the backdrop of the failure of the authorities concerned to ensure smooth supply.

Gas shortage has led to several spinning, weaving, dyeing and printing mills in Dhaka, Gazipur, Savar, Ashulia and Narsingdi industrial zones not running at full capacity.