The Bangladesh Energy Regulatory Commission (BERC) is set to announce a new gas tariff at the consumer level on Sunday.
"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.
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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.
Consumer Association of Bangladesh (CAB) Energy Adviser Professor Shamsul Alam said the gas distribution companies are still profitable. Some 12-14 per cent of gas is being stolen every year. If these can be stopped, there is no need to increase the price.
A member of the BERC told The 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-Elahi 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 of increase, he said.
