FBCCI President Md Jashim Uddin and other businesses leaders attend a press conference on the proposed increase in power and gas tariff at the FBCCI office in the city on Saturday Terming the move to enhance prices of power and gas at this hour 'suicidal', leaders of the country's apex trade body urge the government to postpone the proposal and save businesses from going bust.
Speaking a a press conference arranged Saturday by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) they proposed that the government should provide subsidies as an alternative to utility price raise while the economy is beginning to see a rebound.
They note that such a move comes specially at a time when the businesses are planning to move ahead after rebounding from the Covid-19 shocks amid global supply- chain volatility following the Russia-Ukraine war. The tariff-increasing plan, if gets through, will severely affect the businesses in the form of enhanced cost of production, thus hurting competitiveness globally.
"The businesses cannot afford the costs. No industry will be in operation if the per-unit gas price is enhanced to Tk 28 from Tk 13. I think those who make such a proposal under current circumstances either do it sans understanding anything or to leave the government in trouble," FBCCI president Md. Jashim Uddin said at the press conference held at the Federation Bhaban.
As the Covid pandemic and Russia-Ukraine war have raised the price of raw materials on the international market, and businesses have to pay extra cost for shipping and transportation, the cost of doing business is already high in the country, eventually making it difficult to remain competitive for the export-oriented sector, he told the press.
Eschewing creating any further burden, the FBCCI president urged the government to postpone the process of increasing the prices of electricity and gas.
"This is not the right time to raise the power and gas prices. It would be suicidal for the economy" he says.
The FBCCI chief said as the economic impact is not properly considered in the price-hike proposal, it should not be taken into consideration according to BERC law.
"The current world situation hits the oil market, and based on this temporary trend, the government should not increase the price of power, rather mitigate the challenge with the Energy Fund," he suggests.
Demanding a 20-year roadmap for ensuring cheap, uninterrupted and sustainable energy, he said they supported the idea of quick-rental power plants when it was very essential but now these should be shut down.
At the same time, non-performing plants need to be replaced with modern ones through BMRE (Balancing, Modernization, Rehabilitation and Expansion).
"Without paying attention to such important areas, the government plans to raise the prices. The industrial sector cannot bear the costs of the wrong planning of the government," he added.
FBCCI director and president of Bangladesh Chamber of Industries (BCI) Anwar Ul Alam Chowdhury Parvez said during this currency crisis, capacity enhancement of local industry is much needed. ''Textile industry will be destroyed if electricity prices are increased, which will be a self-destructive decision for the country.''
FBCCI director and president of Bangladesh Textile Mills Association (BTMA) Mohammad Ali Khokon said that the proposal of price increase of gas and electricity was made to embarrass the government.
Giving some statistics, he said Titas Gas Transmission and Distribution Company Limited had gained a pre-tax profit of Tk 15.64 billion and paid tax worth Tk 3.94 billion to national exchequer over the last three years.
Senior vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md. Shahidullah Azim said the RMG sector would face a big blow if the energy tariff goes up at the moment when global buyers started squeezing sourcing.
"We will lose our competitiveness. If we cannot earn foreign currency, it will put further pressure on the foreign-exchange reserves. So, this is not the right time to take any decision that will raise cost of production," he said.
Criticising the proposal, president of the National Association of Small and Cottage Industries of Bangladesh (NASCIB) Mirza Nurul Ghani Shovon feels that political decision needs to be taken to address the problem.
"Bureaucratic decision will not solve the pains. Political intervention is required," he says.
Executive President of BKMEA Mohammad Hatem claimed that the export sector is reviving and the price rise of power and gas will hamper the process.
President of Bangladesh Steel Manufacturers Association (BSMA) Manwar Hossain and president of Real Estate and Housing Association of Bangladesh (REHAB) Alamgir Shamsul Alamin, among others, also spoke at the press conference.
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