Gas price hike to hit public life

Prices of service-oriented commodities are generally raised to overcome losses of service providing organisations, but the Bangladesh Energy Regulatory Commission (BERC) has proposed to up gas prices despite the gas transmission and distribution companies making profit. So questions naturally arise as to the logic behind the price hike proposal.

According to the proposal, for domestic use, the gas price for one burner will be Tk 1,350 while two burners Tk 1,440. The current price is Tk 750 and Tk 800 respectively. The price of gas used in transport will be raised to Tk 48 from Tk 32 per unit. Gas used in industries will be raised to Tk 18.04 from Tk 9.62 per unit.

The highest price has been proposed for gas used in the public-private power plants, that is, Tk 9.74 per unit which is only Tk 3.16 now. The average price hike rate is 102.85 per cent.

In raising the price of gas or any service-related commodity, it is necessary to take into consideration what benefits are to be gained. The income of gas transmission and distribution companies will increase if gas prices are hiked. It is essential to assess the losses to be incurred as the huge number of consumers will be affected and the production costs in industries will go up due to the gas price hike.

If the cost of industrial products is increased, it would have an impact on the consumers. Industrialists have already said that their production cost has increased by 35 per cent. If the price of gas is raised again, the production cost will increase further, which will be difficult to tackle.

The profit the companies are planning to make by increasing gas prices can be fulfilled by reducing system loss.

If the price of gas for two burners is raised to Tk 1,440, one burner cannot be Tk 1,350. Poor and middle class people use one burner. There is an allegation that two burners are secretly used in the name of one burner. The remedy is not to raise price of one burner abnormally, but to reduce corruption.

The energy crisis has to be assessed in a comprehensive manner. Gas reserves are depleting. Liquefied Natural Gas (LNG) is being imported to meet rising demands. The government launched rental and quick rental power plants with huge subsidy to meet the power crisis, but this cannot go on forever.

In case of increasing the price of gas and electricity, the government has to consider the interest of the people. The government has to reach to a logical decision in this regard. Questions have been raised at the public hearing of BERC. This type of hearing should not be a mere token. The government has to take public opinion into cognisance in its decision making.