CNG price hiked by Tk 5.0 per unit too

FE Team | Published: September 20, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report The government Monday raised the compressed natural gas (CNG) price to Tk 30 per unit (1.0 cubic metre), a 20 per cent hike from the existing tariff of Tk 25 per unit. The Bangladesh Energy Regulatory Commission (BERC) announced the new price, effective from Tuesday saying the hike was necessary in view of the increased prices of petroleum products. The decision to raise CNG price came within a day of the petroleum price hike which has been increased within the range between 6.32 per cent and 19.04 per cent by an executive order. The government raised fuel prices by Tk 5.0 per litre for diesel, kerosene, petrol and octane and Tk 8.0 per litre for furnace oil Sunday. Under the new price, which came into effect Monday, each litre of diesel and kerosene is now being sold in the domestic market at Tk 51, petrol at Tk 81, octane at Tk 84 and furnace oil at Tk 50. "We have increased the CNG price as an interim measure following a price hike plea from Petrobangla," BERC Member Selim Mahmud told the newsmen Monday. Petrobangla stated that the government revenue would increase by Tk 5.59 billion annually following the hike. The energy commission raised the CNG price after four months of the previous hike in May 12, 2011. That time the CNG price was increased by 49.25 per cent from Tk16.75 per unit to Tk 25 per unit. Officials said the recommendation to raise CNG price came from an inter-ministerial meeting Monday. BERC top officials attended the meeting. The meeting suggested to raise the CNG price hike in line with the increased prices of petroleum products. The meeting viewed that the transport owners, both petroleum-run and CNG-run would increase the transport fares no matter whether the CNG price has been increased or not, said an official. Officials, however, feared that the hike might push up prices of food and transportation costs further. Meanwhile, the government has hiked fares of transports Monday following the increase in petroleum and CNG prices. State-run Bangladesh Road Transport Authority (BRTA) increased the fare of CNG-driven bus and minibus by Tk 0.05 per kilometre and CNG-driven auto-rickshaw by Tk 0.14 per km effective from Tuesday. The bus and minibus fare has been increased to Tk 1.60 per km from the previous Tk 1.55 in Dhaka following the hike. For Chittagong the fare for bus and minibus has been increased to Tk 1.50 per km from the previous Tk 1.45. Fare for CNG-driven auto-rickshaw has been fixed at Tk 7.64 per km from the previous Tk 7.50. This is, however, the second hike in fare of transports in the past four months following the hike of petroleum products and CNG prices.