In order to support the nation’s industries and trade, traders from a variety of industries have called for the price of gas to be set at 24 taka 39 paisa per unit. They stated that trade and industry would suffer severe consequences if gas prices rose. They think that these actions have been taken to stop the country’s current industries from operating and to stop new industries from growing.
The Chairman of the Bangladesh Energy Regulatory Commission (BERC) has received input on the price of gas from entrepreneurs from three industrial groups and leaders of 11 of the nation’s top business organizations.
On February 26, BERC held a hearing to discuss the proposal to raise gas prices in the industrial sector. It suggested raising the cost of gas for new industries from 30 taka to 75 taka 72 paisa per unit. According to traders, raising the price of gas will discourage new investments, create no jobs, disrupt exports, and cause the nation’s economy to collapse.
Leaders of business organizations and entrepreneurs submitted their written opinions to the BERC Chairman on Sunday. The agreement was signed by Metro Chamber President Kamran T. Rahman, Leather and Footwear Manufacturers and Exporters Association (LFMEB) President Syed Nasim Manzur, Dhaka Chamber President Taskin Ahmed, Bangladesh Chamber of Industries (BCI) President Anwar-ul Alam Chowdhury, former president of top business organization FBCCI Mir Nasir Hossain, administrator of ready-made garment industry owners’ association BGMEA Md. Anwar Hossain, knitwear industry owners’ association BKMEA Md. Hatem, president of textile mill owners’ association BTMA Shawkat Aziz Russell, president of ceramic industry owners’ association BCMEA Mainul Islam, factory owners’ association BGAPMEA Md. Shahriar, president of plastic industry owners’ association BPGMEA Shamim Ahmed and chairman of Meghna Group of Industries Mustafa Kamal, managing director (MD) of City Group Md. Hasan and Uttar Motors Chairman Matiur Rahman.
The traders said that the proposal to increase the price of gas has thrown everyone involved in the industry and business into uncertainty. When the gas price was unilaterally increased in 2023, the industrial owners were promised uninterrupted gas supply. However, the industrial owners are getting 30-40 percent less gas than the demand. Production is being disrupted due to low gas pressure. Due to which the traders feel that the distribution companies should give appropriate compensation to the industrial owners.
The traders further complained that due to the lack of uninterrupted gas, the production of industrial factories in Gazipur, Ashulia, Savar, Narayanganj, Munshiganj, Bhaluka and Narsingdi has decreased by 30-40 percent. They feel that it is necessary to increase the gas supply by increasing the efficiency of the gas distribution companies and reducing wastage, especially the huge system loss of Titas Gas to a minimum level. Alternative fuels for power generation, especially coal-based power plants, should be operate at maximum efficiency. Reducing taxes and Petrobangla charges at the supply level and eliminating double VAT and tax at source on LNG imports are further ways to lower gas prices.
At the BCI office last Thursday, business leaders talked about the steps to raise gas prices. With reference to that meeting, the leaders informed the BERC chairman that the business community finds it incomprehensible that the government approved this unusual proposal for a gas price hike when the issue is how to maintain businesses or industries. In order to support businesses and industries, the business community thinks that the current gas price should be lowered to a maximum blended price of 24 taka 39 paisa.
