The energy regulator has formally accepted the gas tariff hike proposals from the state-run gas companies for near doubling the rate for consumers except households.
Bangladesh Energy Regulatory Commission (BERC) took into cognisance the tariff hike proposals after the initial scrutiny last week, said a senior commission official.
The BERC has the authority to deny any proposal too at initial stage, if it does not find it to be appropriate, he said.
The commission might announce the schedule for holding public hearings against the proposals and invite stakeholders and consumers to oppose and protest against the pleas soon.
The state-run gas companies submitted the tariff hike proposals to the BERC within one year of the previous hikes to cope with the increased energy costs with the import of expensive LNG (liquefied natural gas).
Bangladesh received its first LNG cargo on April 24 as the US-based Excelerate Energy Bangladesh Ltd brought in its floating, storage and re-gasification unit (FSRU) carrying 133,000 cubic metre of lean LNG from Qatar's RasGas.
The BERC raised the natural gas tariff by 22.70 per cent for all types of consumers in phases with effect from March 1, 2017 and June 1, 2017 respectively.
Fresh hikes in natural gas tariff might also come in phases with the increase of the import volume of LNG in the country, said an industry insider.
The gas distribution companies in their unified proposals sought the average natural gas tariff be raised to Tk 12.95 per cubic metre (cm) from the existing Tk 7.39 per cm.
They wanted to raise tariff for gas-fired power plants to Tk 10 per cm from the existing Tk 3.16, for fertiliser factories to Tk 12.80 per cm from the existing Tk 2.17.
The price of compressed natural gas (CNG) in the filling stations has been proposed to be hiked to Tk 48 per cm from the existing Tk 40.
For the industrial sector, natural gas tariff as sought by the distributors is Tk 15 per cm in place of the existing Tk 7.76.
For gas-fired captive power plants, the tariff hike as sought is to Tk 16 per cm from the existing Tk 9.62.
Gas tariff for tea gardens has been proposed to Tk 12.80 per cm from the existing Tk 7.42.
Petrobangla had earlier sent proposals separately to its large natural gas consumers like state-run Bangladesh Power Development Board (BPDB) and Bangladesh Chemical Industries Corporation (BCIC) over the possible hike in the fuel.
Petrobangla has estimated that the government would require US$844.20 million (Tk 69.22 billion) in one year to import a total of around 1,000 million cubic feet per day (mmcfd) equivalent of LNG and its re-gasification in two under-construction FSRUs (floating, storage and re-gasification unit).
Energy adviser of the Consumers Association of Bangladesh (CAB) Professor M Shamsul Alam stressed the need for stopping gas theft first.
Any increase in tariff would be burdensome to commoners, he said.
© 2024 - All Rights with The Financial Express
