FE Today Logo
Search date: 21-06-2018 Return to current date: Click here

Gas price hike move draws flak

Consumers for ending graft, exploring new gas fields


June 21, 2018 00:00:00


FE Report

Fearing hike in transport and electricity cost, consumers at a public hearing on Wednesday strongly opposed proposals for gas price rise by different gas transmission companies.

Rather, they urged the authorities concerned to take steps for removing corruption, stopping high prevalence of illegal gas connection and exploring new gas fields.

They put thrust on supplying quality gas with accurate pressure to the households, CNG refuelling stations and industries.

The public hearing was arranged by Bangladesh Energy Regulatory Commission (BERC).

Representatives from Consumers Association of Bangladesh (CAB), Bangladesh CNG Filling Station and Conversion Workshop Owners Association and political parties participated in the programme held at the TCB auditorium in the city. BERC chairman Monowar Islam chaired the hearing

At the hearing, the state-owned Bakhrabad Gas Distribution Company Ltd (BGDCL) sought a hike in its transmission charge by 100.98 per cent to Tk 0.5111 per cubic metre (CM) from the existing Tk 0.2543.

Meanwhile, Pashchimanchal Gas Company Limited (PGCL) sought a hike in its transmission charge by 75 per cent on average for different recipients.

Participating in the hearing, CAB adviser Prof M Shamsul Alam raised questions about the proposals for gas price increase by different transmission companies.

He said there are two dimensions of 'graft' in the gas sector; one is supplying gas at lower pressure to the customers and another one is in the name of system gain.

He said though different transmission companies are claiming that they have made system gains; but in reality, at least 10 per cent system loss still exists.

"Then where does the 10 per cent gas go? It goes to the illegal connections," he added.

On the other hand, the companies are supplying gas to the consumers at lower pressure but take the bills as usual. "It's a fraudulent act with the people," he said.

Prof Dr. Badrul Imam of Dhaka University said, "I don't understand why the government is importing pricey liquefied natural gas (LNG) while there are avenues to reduce the system loss."

Mentioning that there was lesser system loss in the early 80s, he said system loss in gas sector has been between 10 and 12 per cent for long. It should have come down after modernisation.

He said if import of LNG continues instead of gas exploration, the gas price will be out of the people's affordability.

Speaking at the programme, CNG Filling Station Owners Association secretary general Farhan Noor Bhuiyan said the government should not raise the gas price for CNG filling stations considering its environment and health benefits.

He said CNG filling stations consume 4.76 per cent of total gas in the country. These stations generate 22 per cent of total revenue of different gas transmission and distribution companies.

Responding to a question about selling cylindered gas unlawfully to industries by different CNG filling stations, Mr Bhuiyan said, "It's true that such incidents happen, but there are reasons behind it."

"Industries sometime do not get required pressure of gas in their lines. In these cases, they add the cylindered gas to gain needed pressure to continue production," he added.

[email protected]


Share if you like