BCI seeks review of gas price hike

Staff reporter :

Leaders of the Bangladesh Chamber of Industries (BCI) have called on Chief Adviser Professor Dr Muhammad Yunus to intervene and revise the recently announced gas price hike, which saw increases of up to 33 per cent for new industrial connections and significant rises for captive power usage.

In a letter dated 17 April, the BCI described the Bangladesh Energy Regulatory Commission’s (BERC) decision to increase gas prices as “illogical and unfair,” particularly given the current economic climate.

“The uniform tariff now applied to both micro and small industries risks discouraging new entrepreneurs from entering the market,” the letter stated. “This could hamper job creation and pose a significant barrier to nurturing grassroots-level entrepreneurship.”

The BCI urged the Chief Adviser to initiate dialogue with industrial stakeholders to discuss the potential implications of the price hike. Should direct consultation be unfeasible, the chamber proposed the formation of a high-level expert committee to evaluate the impact of the new pricing structure on the economy.

Pending a comprehensive review, the business leaders requested that the BERC notification issued on 13 April be suspended and that gas prices be readjusted to support national economic stability.

Under the revised pricing, the rate for captive power – widely relied upon by the export-oriented manufacturing sector to ensure uninterrupted electricity supply – has surged to Tk42 per unit from the previous Tk31.50. Industrial gas connections have also increased from Tk30 to Tk40 per unit. For newly approved industrial connections after 13 April, the rate has jumped by Tk10 per unit, marking a 33 per cent increase.

The BCI warned that this pricing policy could exacerbate operational costs for manufacturers at a time when they are already grappling with inflation, weakened consumer demand, and other economic headwinds.