Gas users have to pay 22.78-percent higher tariffs on average now as Bangladesh energy regulator announced Sunday an across-the-board raise in its rates with retrospective effect since June 01.
The new weighted average natural gas tariff rises to Tk 11.91 per cubic metre from Tk 9.70 following the hike, which consumer-rights campaigners described as ill-timed amid general price rises and financial crunch.
Acting chairman of Bangladesh Energy Regulatory Commission (BERC) Mohammad Abu Faruque unveiled the tariff-hike decision at a press conference online.
"The commission fixed the tariffs taking into account that state-run Petrobangla will get around Tk 33 billion from gas development fund (GDF), Tk 25 billion from retained earnings of state-run gas transmission and distribution companies and Tk 60 billion as subsidy from government, totalling Tk 118 billion," said Mr Faruque.
The natural-gas tariff for compressed natural gas (CNG) has been kept unchanged at Tk 43 per cubic meter to check any "unexpected consequence on transport fares", he added.
Tariff for small and cottage industries has been lowered by 36.74 per cent to Tk 10.78 per cubic metre from previous Tk 17.04.
Country's apex trade body -- the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) -- terms the tariff hike 'rational' while rights groups, including the Consumers Association of Bangladesh (CAB), call it a 'mockery' with the consumers.
With the new hike, fertiliser factories will count the highest hike in tariff by 259.55 per cent to Tk 16 per cubic meter from Tk 4.45.
Households cooking with single-burner stoves will have to pay 7.03-percent higher at Tk 990 per month instead of the previous month's Tk 925, while the double-burner users will have to pay Tk 1,080 with a 10.77-percent hike.
New gas tariffs for metered household consumers increased by 42.86 per cent to Tk 18 per cubic meter from previous Tk 12.60 per cubic meter.
The gas tariff for power plants has been hiked by 12.81 per cent to Tk 5.02 per cubic meter from previous Tk 4.45 per cubic meter.
Captive power plants will count a tariff hike by 15 per cent to Tk 16 per cubic meter from Tk 13.85.
The regulator this time has split the industry category into two -- big industry and medium industry -- and raised gas tariff for big industries by 11.96 per cent to Tk 11.98 per cubic meter from previous Tk 10.70 per cubic meter. For medium-category industries the hike is 10.09 per cent to Tk 11.78 per cubic meter from previous Tk 10.70 per cubic meter.
Gas tariffs for hotel and restaurants under commercial consumers segment have been raised by 15.83 per cent to Tk 26.64 per from previous Tk 23 per cubic meter.
For tea estates, new tariff has been set at Tk 11.93 per cubic meter in a raise from Tk 10.70, accounting for a hike by 11.50 per cent.
The FBCCI president, Md Jashim Uddin, through a press release issued in the evening thanked Prime Minister Sheikh Hasina for keeping gas prices "rational" amid the global turmoil caused by the Ukraine-Russia war and the rising trend in liquefied natural gas (LNG) prices.
"Reducing tariff will help the small and cottage industries to revive at this stage of the post-Covid economic recovery," he says.
Public transport fares will remain the same as the CNG tariff is kept unchanged, he adds.
"The FBCCI believes that the new rates have been set taking into consideration the capabilities of all types of industries in the country, national and international perspectives," the press release notes.
"The PM's far-sighted decision regarding gas tariffs will further accelerate the country's industrialization and economic growth," the apex trade body hopes.
The FBCCI also called upon the distribution companies to ensure uninterrupted gas supply to help keep factory production on stream.
A harshly critical view came from the CAB. "The BERC has 'ridiculed' us ignoring our 25-point demand, which includes stopping gas theft and, checking illogical and unnecessary spending and withdrawal of top-level government officials, including secretaries and additional secretaries, from the board of directors of state-run gas companies," CAB energy adviser Prof M Shamsul Alam said.
"Natural gas tariff could be reduced by Tk 0.16 per cubic meter on average, instead of the hike, if our proposals were taken into consideration," said the CAB leader.
Petrobangla and other state-run gas-marketing and-distribution companies, including Titas Gas Transmission and Distribution Company, Bakhrabad Gas Distribution Company Ltd, Jalalabad Gas Transmission and Distribution System Ltd, Sundarban Gas Company Ltd, Pashchimanchal Gas Company Ltd, and Karnaphuili Gas Distribution Company Ltd, had submitted proposals separately to the BERC early this year for a hike of 117.41 per cent in natural gas tariffs on grounds of high-priced import of liquefied natural gas (LNG).
Azizjst@yahoo.com
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