Further hike in gas prices soon

Gas prices will see a sharp rise again due to the inclusion of imported Liquefied Natural Gas (LNG) to the energy sector from April.

An energy committee is working on adjusting the new prices of gas, said relevant government officials.

There is no alternative to increasing the price of gas, energy secretary Nazimuddin Chowdhury told Prothom Alo.

“The current production cost of a unit of gas is more than Tk 9. The cost will rise to around Tk 14 per unit once the LNG import begins,” he said.

“We are going to send a proposal to the energy regulatory committee in this regard.”

LNG, according to a government forecast, will hit the industrial and business communities hard. Cost of one cubic feet of gas may increase up to Tk 14.90 from the current price of Tk 7.76.

Also, the CNG price is projected to be doubled after the beginning of LNG importation. Price of a cubic metre of CNG will be Tk 51.70 from the current Tk 32. Commercial consumers of the gas will likely have to pay Tk 35, instead of Tk 17.04.

According to the projection, this hike may hit the domestic gas users, too. Users of single-burners may have to pay Tk 1,000 each instead of Tk 750 and those with double-burners, Tk 1,050 instead of Tk 800.

Gas-fired power plants will also be affected by the increased gas prices.

Energy secretary said the country will initially receive 500 million cft LNG per day. The government is planning to import LNG equivalent of four billion cft gas per day by 2025.

Energy expert professor M Tamim said, “As the import of LNG will be increased, supply of gas from internal sources to the national grid will gradually be reduced. The LNG price hike in the international market will seriously affect the country’s economy.”

CNG station owners said there was no justification in increasing gas prices.

The government however has said there is no alternative to increasing gas prices other than having no gas at all.

The government also said the LNG inclusion will help support industrial production and will create at least one million jobs in the sector.