Govt likely to raise gas price for captive power plants

Staff Reporter :
The government is likely to increase the price of gas supplied to captive power plants in the industrial sector.
Gas is being bought at Tk 26 to Tk 30 per cubic meter and the government selling it at Tk 16 for Captive Power Plants with subsidy. So, it is not possible to sell the gas at Tk 16 and the price of gas should be increased.
Prime Minister’s Adviser on Private Industries and Investment Salman F Rahman said this while addressing in a function titled ‘Bond Market: The Ultimate Long Term Solution’ held in the city’s Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Tuesday.
Among others, Chairman of Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubaiyat-ul-Islam and President of FBCCI Jasim Uddin were present at the event.
Meanwhile, a top official of the Bangladesh Energy Regulatory Commission (BERC) told The New Nation that they are yet to get any proposal to increase the gas price in industrial sector.
 “The price of gas supplied to captive power plants of the industrial sector should be increased. The government is now buying gas at Tk 75 and selling it at Tk 16 to captive power plants. It is not possible to sell gas at Tk 16 at this moment. The Prime Minister has said to sit with the traders to determine how much the price of gas can be increased,” Salman F Rahman said.
The Prime Minister’s Adviser has already spoken to various traders including the leaders of BKMEA, BGMEA and FBCCI.
“I informed them regarding hiking the gas price and now the traders will decide how much of the price can be increased,” he added.
Salman F Rahman said that the government is able to buy LNG from the international market at a higher price but unable to supply due to high price.
“The government can supply gas if we determine the price as to how much the government can provide maximum subsidy and the traders can buy it,” he said.
There is tremendous pressure on foreign exchange, Salman F Rahman said adding that electricity and gas crises are a big problem in the country.
“Load shedding has already been started and people particularly those of industrial sectors are the sufferers. These problems are not only ours as different countries across the world facing such problems. Even foreign exchange reserves have also declined in neighboring country India. Such a big country like India is also under pressure. We also have to face such problems due to the global problems,” he said.
When contacted, BERC Chairman Abdul Jalil said that he had no knowledge regarding the issue of gas price hiking in industrial sector.
“The matter can be discussed in the higher level of the government. But we are yet to get any such proposal from the appropriate authority. Once we get the proposal, the matter will be examined to increase the price of gas supply to captive power plants in industrial sector,” he told The New Nation on Tuesday.