The country's energy regulator has finally accepted proposals from state-owned gas marketing and distribution companies to raise natural gas tariff for all types of consumers by up to 122 per cent.
The Bangladesh Energy Regulatory Commission (BERC) will start a four-day public hearing on the proposed natural gas tariff as well as wheeling charge for the transmission company from February 2 next.
State-run Petrobangla had earlier moved several times and submitted proposals to raise natural gas tariff after the last hike made effective in August, 2009. But the BERC turned down all those proposals and asked the gas marketing and distribution companies to submit those individually.
Although the gas marketing and distribution companies submitted tariff hike proposals separately to the BERC, the proposed rates of hike were identical.
BERC, however, has arranged public hearings separately on their proposals.
State-owned gas marketing and distribution companies have sought the highest hike of tariff for household consumers by 122 per cent followed by captive power plants by 102 per cent.
The gas marketing and distribution companies have sought to raise the natural gas prices for domestic consumers who use double-burner gas stoves by 122.22 per cent to Tk 1,000 per month and by 112.50 per cent to Tk 800 per month for single burner.
For privately-owned smaller power plants, known as captive power plants, the tariff hike has been proposed by 102.94 per cent per unit (1,000 cubic feet) to Tk 240 from Tk 118.26.
The tariff hike for power plants has been sought by 5.24 per cent to Tk 84 per unit for power plants from Tk 79.82 per unit.
They sought to raise the tariff by 9.71 per cent to Tk 80 per unit from Tk 72.92 per unit for fertiliser factories and by 32.60 per cent to Tk 220 per unit from Tk 165.91 per unit for industrial users.
The gas marketing and distribution companies have also proposed to raise the natural gas tariff by 30.55 per cent to Tk 350 per unit from Tk 268.09 for commercial consumers, by 20.55 per cent to Tk 200 per unit from Tk 165.91 for tea estates and by 39.10 per cent to Tk 905.92 per unit from Tk 651.29 for feed gas of compressed natural gas (CNG) filling stations.
For retail consumers, the price per cubic metre will be increased to Tk 40 from Tk 30.
The commission earlier raised natural gas tariffs for all types of domestic consumers, excluding CNG, by 11 per cent on August 1, 2009.
The CNG price was last hiked by 20 per cent to Tk 30 per unit on September 20, 2011.
State-run Gas Transmission Company Ltd (GTCL) proposed to raise the wheeling charge of gas by 134.44 per cent to Tk 21.24 per unit from Tk 9.06 per unit in three phases, from the financial year 2014-15.
The hike is necessary for carrying out the oil and gas exploration and other necessary development work in the energy sector, they argued.
As per schedule, the public hearing for raising wheeling charge will be held on February 2.
Public hearings for Titas Gas Transmission and Distribution Company Ltd and Pashchimanchol Gas Company Ltd will be held on February 3.
Bakhrabad Gas Distribution Company Ltd and Karnaphuli Gas Distribution Company Ltd will face public hearings on February 4.
Public hearings of Jalalabad Gas Transmission and Distribution Systems Ltd and Sundarban Gas Company Ltd will be held on February 5.
The country's overall natural gas production now hovers around 2,470 million cubic feet per day (mmcfd) against the demand for around 3,000 mmcfd.
Gas shortages have compelled the Petrobangla to ration gas supplies to industries, power plants and fertiliser factories.
azizjst@yahoo.com
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