Consumer rights groups and left-leaning political organizations challenged on Monday the legitimacy of raising natural gas prices within a year of increase.
They also protested the tariff hike proposals of state-owned Petrobangla and its gas marketing and distribution arms on the opening day of four-day public hearing.
The Bangladesh Energy Regulatory Commission (BERC) arranged the hearing at TCB auditorium in the capital.
"The BERC has no legal ground for hearing the gas price hike proposal within one year of increase," energy adviser of the Consumers Association of Bangladesh (CAB) Prof M Shamsul Alam said referring to the BERC law.
It is "unlawful" to hold such a public hearing during the fiscal year 2018-19 when the Commission issued its order on October 16 in 2018, he said.
"You cannot hold such a public hearing by entertaining any proposal for gas tariff hike when you disposed of a similar proposal just in October," he added.
The Commission, in its latest verdict on October 16, 2018 had increased margin rate and transmission charge of different gas companies keeping the price for retail consumers unchanged.
Petrobangla chairman Ruhul Amin, in a presentation, proposed hiking the tariff to Tk 12.19 per cubic metre from Tk 7.35 to cover up the increased costs of importing liquefied natural gas (LNG), which is expensive.
Unless tariffs are not hiked, Mr Amin said the government would require providing subsidies of Tk 245 billion to Petrobangla from April when an additional 500 mmcfd of LNG is added to the national grid.
Currently Petrobangla has been purchasing each unit of gas from different upstream gas production companies at an average rate of about Tk 6.50 per cubic metre, while each unit of LNG would cost Tk 39.82, he said.
The state-run energy corporation has been importing around 500 million cubic feet per day (mmcfd) of LNG bringing the country's overall gas output to around 3,100 mmcf a day.
The rights groups protested the Petrobangla proposal, saying hiking tariff before the April arrival of LNG is not "legitimate."
They were also critical of Petrobangla's cost of importing LNG.
If neighbouring India could import LNG at a cost of around US$6.0 per thousand cubic feet why Petrobangla would have to pay around $10 for the same, they argued.
In Monday's hearing, state-owned Gas Transmission Company Limited (GTCL) placed its proposal to raise the transmission tariff of gas supply.
BERC chairman Monwar Islam presided over the public hearing while other members of the energy watchdog were present.
Eminent energy expert Prof Nurul Islam said the tariff fixation process for both upstream and downstream companies should be transparent.
He said currently only the retail level gas tariff is being fixed through public hearing by the Commission.
The bulk tariff of gas should also be fixed by the Commission, like those of power companies, following public hearing, he said.
Prof Badrul Imam of Geology Department of Dhaka University was also critical of the government's slow pace in exploring offshore energy blocks.
He said it is "unfortunate" that even after settlement of maritime boundary dispute both the neighbouring India and Myanmar awarded contracts several times for offshore gas explorations while Bangladesh could not make any significant headway.
"Did we make any pledge that we would not explore our offshore areas?" he questioned.
Communist Party of Bangladesh (CPB) leader Ruhin Hossain Prince said the leftist parties would go for mass movement against the gas price hike. The BERC has lost its credibility as a neutral watchdog, he added.
Chief Coordinator of Bangladesh Gano Sanghati Andolon Zonayed Saki also opposed the gas price hike proposal during the public hearing.
Azizjst@yahoo.com