GAS PRICE HIKE: WRONG MESSAGE AT THE RIGHT TIME

The recent decision to increase the gas prices for new industrial units by 33% has been greeted with concern, grumblings, and disappointment. Bangladesh Energy and Regulatory Commission has downplayed objections from businesses and consumer rights groups, saying the raise has been much lower than the 150% asked by the gas distribution companies. Here is what has happened.

- Farid Hossain

To get a gas connection, a newly established industrial unit will now have to pay 33% more than the existing industries. There is more to it. According to the BERC verdict, after hearing stakeholders, existing units will also have to pay the new rate for consuming more than their sanctioned load. The industrial plants that are yet to start operation despite having permission must pay 50% of their consumption at the current rate and the remainder of their sanctioned load at the new rate.

According to a report in the Daily Star, the latest rates mean new industrial connections will be charged Tk 40 per cubic meter, up from Tk 30.

Similarly, new captive users will have to pay Tk 42 per cubic meter, up from Tk 31.5. Captive gas consumers are entities that have their gas-fired power plants to produce electricity primarily for their own consumption.”