Massive hike in gas prices on the card
Kazi Zahidul Hasan :
State-run gas distribution and transmission companies finally on Sunday submitted their proposals to the Bangladesh Energy Regulatory Commission (BERC) seeking an increase in gas prices at all consumer levels, sources said.
The companies, which sent their proposals, are Titas Gas Transmission and Distribution Company Ltd, Karnaphuli Gas Distribution Company Ltd, Jalalabad Gas Transmission and Distribution System Ltd, Pashchimanchal Gas Company Ltd and Bakhrabad Gas Distribution Company Ltd.
Earlier, in a similar move, the state-run Power Development Board (PDB) also proposed the BERC for 18.12 per cent increase in the bulk electricity rates.
Sources in the BERC said, in their proposals, the gas distribution companies have proposed a massive hike of gas prices for the residential consumers while a proportionately lower tariff hike was proposed for the use of commercial and industrial purposes.
They said, the distribution companies have proposed the highest price hike by 122.22 per cent for household gas use followed by 102.94 per cent for captive power generation.
A 60.68 per cent hike has been proposed for the use of 1000 cubic feet gas in domestic use (meter based lines).
A 33 per cent hike has also been proposed for the CNG, 32.6 per cent for industries, 30.55 per cent for commercial, 20.55 per cent for tea gardens, 9.71 per cent for fertilizer factories and gas use for power generation by 5.24 per cent.
“We have received price hike proposal from five state-run gas companies on Sunday and all they have submitted their proposals separately,” Dr Selim Mahmud, a member of the BERC, told The New Nation.
He added: The BERC will hold three public hearings next month and then give a final decision on their proposals of hiking gas and electricity prices.
Dr Selim Mahmud further said that the power distribution companies have earlier applied to the energy regulator to readjust electricity tariffs for bulk and retail level to help them reduce losses.
When asked, he said, the price hike of gas and electricity will come to effect from January 1 next year.
Once such hike proposals of distribution companies are endorsed by the BERC, the household consumers will have to pay Tk 1,000 a month for the use of two burners gas cooker instead of Tk 450. For single burner gas cooker, they will have to pay Tk 850 a month instead of Tk 400, a hike by over 112.50 per cent.
Consumers using meter-based burners will have to pay Tk 235 instead of Tk146.25 per month.
The industrialists will have to pay Tk 240 for the use of 1000 cubic feet natural gas for captive power generation from Tk 118. Gas tariff for power plants has been proposed Tk 84 for every 1,000 cubic feet of gas instead of Tk79.82.
According to the proposals, the fertilizer companies will have to pay Tk80 from Tk72.92 while industrial users Tk 220 from Tk165.91.
Prices will be Tk350 from Tk268.09 for commercial users, Tk200 from Tk165.91 for tea gardens, Tk905.92 from Tk651.29 for CNG refuelling stations and Tk1,132.67 from Tk849.50 for CNG at consumer level for every 1,000 cubic feet gas.
Earlier, the Ministry of Power, Energy and Mineral Resources suggested the distribution companies to increase gas prices by 5 per cent to 122 per cent in different consumer categories with a view to reducing wastage.
Currently, the country consumes about 2,330 million cubic feet of gas daily. At present there are 25 gas fields and of which 19 are operational.
Currently, out of total consumption, 41 per cent is used for power generation, 17 per cent by captive power plants, 17 per cent by the industrial sector, 8 per cent for producing fertilizer, 5 per cent as CNG, 11 per cent for residential purposes and 1 per cent for other usages.
The last hike of gas prices took place in November 2008. After the Awami League-led government came to power in 2009, it only increased the price of compressed natural gas (CNG) several times.