BANGLADESH has so long been depending on local gas fields for its energy requirement. But lately the government has started importing liquefied natural gas (LNG) to meet the growing demand for gas. The imported gas would be put in the transmission lines from June 2018 for onward supply to its customers. In the meantime, Petrobangla has prepared a draft proposal containing price recommendation for the imported gas wherein it has suggested a 100 per cent rise from the existing price for different consumers like industries, commercial organisations and captive power plants.
There had been eight different prices of fuel gas in Bangladesh for a long time. In view of the present situation of demand and supply, fuel gas prices in Bangladesh needs a reform. The industrial development achieved in Bangladesh so far is not a balanced one if viewed from regional angles. All the industrial units are concentrated around Dhaka and Chittagong districts as these are the areas that enjoy regular supply of natural gas at a very low cost. Most of the citizens within and nearby the two districts are the direct beneficiaries of industrial development. Only a negligible segment of people from rest of the country are in employment in the above mentioned industrial units. Availability of fuel gas at a very low price is one of the significant factors for localisation of industrial units in two regions of Bangladesh.
The government has the moral responsibility to promote balanced growth of all regions of the country. With this end in view the government should develop an environment congenial to setting up industrial units in every region of the country. As supply of fuel gas to all regions is not possible in near future, the government has to make alternative arrangement for industries outside Dhaka and Chittagong. The industrial units that consume liquid fuel cannot compete with those that consume low priced fuel gas in Dhaka and Chittagong regions. To facilitate balanced growth of all regions price difference between gas and liquid fuel needs to be reduced.
In Bangladesh, different fuel gas prices have been prevailing for decades and now the price structure needs to be streamlined in phases. Bangladesh Energy Regulatory Commission (BERC) may adapt a policy of single price at retail level irrespective of consumers. Price increase in phases may be followed to implement the policy as well as balancing the price of the imported LNG with different prices of fuel gas. For example, in the first phase price for commercial, CNG and household use may be kept unchanged. For all other purposes a single price may be fixed taking into consideration the cost of imported LNG. The price may be fixed in such a way that the organisations dealing with gas, transmission, distribution, extraction etc. can operate at no loss, no profit basis. I would like to urge upon BERC to fix a single price of gas for all consumers like other liquid fuel consumers except commercial and household use and CNG for vehicles.
Md. Ashraf Hossain
120, Central Bashabo, Dhaka-1214
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