Proposal to raise gas price ‘illegal’
Titas Gas Transmission and Distribution Company Ltd on Tuesday proposed increase in gas price for all kinds of use, including residential one, at an average rate of 102.85 per cent, a move which was termed by energy experts and businessmen as “illegal”.
The Titas Gas made a proposal to raise the gas price for the use of single and double burners to Tk 1350 and 1440 respectively from the current rate of Tk 750 and 800 respectively.
Titas Gas, Bakhrabad, Karnaphuli and three other distribution companies made the proposal to the Bangladesh Energy Regulatory Commission (BERC), the body to regulate fuel, power and gas price.
According to the BERC laws, the distribution companies cannot make proposal to hike price twice a year.
Last time the BERC hiked the price in October last year though the consumers did not have to pay the increased price. The government paid the distribution companies the added price of around Tk 45 billion for one year.
The BERC organises public hearing before raising the gas prices.
Several civic and commerce bodies took part in the Tuesday’s hearing at TCB (Trading Corporation of Bangladesh) auditorium in the capital’s Karwan Bazar area. They called for a halt in the move to hike the gas price calling it illegal.
“The entrepreneurs’ expenses have increased by 29 per cent than a few years ago since wages and other expenses have increased. Now the gas price hike will make them bankrupt,” said Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Shafiul Islam Mohiuddin.
Alongside the residential rate, the Titas Gas proposed to increase the price of compressed natural gas (CNG) per unit (per cubic feet) from current rate of Tk 32 to 48.10, for captive power plants from Tk 9.62 per unit to Tk 18.04 and for the government and private power plants Tk 3.16 to 9.74 (per unit).
Consumers Association of Bangladesh (CAB) energy adviser professor M Shamsul Alam said the BERC laws say the gas price cannot be increased twice a year.
“The [distribution] companies’ rationale for proposing to hike gas prices due to import of LNG (liquefied natural gas) is not tenable. LNG is an upstream gas and the energy division fixes its price. But they haven’t done it as yet,” he said.
The CAB adviser said, “The distribution companies proposed to hike price based on the LNG price fixed by Petrobangla. But this is illegal. By doing this they have brought disrepute to the government.”
BERC chairman Monwar Islam and members Abdul Aziz, Mizanur Rahman, Rahman Murshed and Mahmudul Haque Bhuiyan were present in the public hearing. They did not answer to the questions of the CAB energy adviser, Shamsul Alam.
Titas Gas managing director (additional) Harun Ar Rashid acknowledged that Petrobangla fixed the LNG price and sent to them.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Siddiqur Rahman expressed surprise why the Titas Gas authorities made a proposal for gas price hike though they are making profit.
Bangladesh Textile Mills Association president Mohammad Ali, CPB central leader Ruhin Hossain Prince and Ganasanhati Andolan chief coordinator Zonayed Saki also addressed the public hearing.
To a Prothom Alo question on whether the public hearing is illegal, BERC member Abdul Aziz Khan on Tuesday night said, “Public hearing has been organised on a proposal that was presented to the commission. The hearing will be halted if the court orders so.”