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Suspend move to gas tariff hike: CAB

It says the initiative contradictory to the spirit of July-August uprising


FE REPORT | February 23, 2025 00:00:00


The Consumers Association of Bangladesh (CAB) on Saturday demanded suspending Wednesday's public hearing over the proposed gas tariff hike for new industries and extended units of existing industries.

Sources said the Bangladesh Energy Regulatory Commission (BERC) arranged the hearing following submission of proposals by state-run Petrobangla and its subsidiaries - gas marketing and distribution companies - for the tariff hikes.

The BERC's tariff hike move would be contradictory to the spirit of July-August movement, according to CAB representatives who spoke at a press conference held at Bishwo Shahitto Kendro in the capital.

CAB also demanded reform of the existing BERC Rule 2003 after constituting a committee incorporating the stakeholders to ensure energy justice and protect energy rights.

The BERC will have to unearth how much money the previous government has adjusted over the past 15 years from 2010 to 2024 through illegal and illogical spending, the CAB demanded.

The commission will have to reveal how much tariff and government subsidy it will be able to cut down through checking illegal and illogical spending, it also demanded.

The rights group also demanded trial of "energy culprits" through formation of a tribunal by the BERC with retired judges of the Supreme Court.

As per the tariff hike proposals of state-run gas entities, new industries and extended units of existing industries will have to pay Tk 75.72 per cubic metre of LNG, or up to 152.40 per cent higher rates from existing ones, currently at around Tk 30 per cubic metre for all industries, big, medium, small and cottage alike.

Owners of all new industries and captive power plants must pay a natural gas tariff at Tk 75.72 per cubic metre for getting new piped gas connections, according to the proposal.

For the new captive power plants, the new tariff will be 141.96 per cent higher than the existing tariff of Tk 31.50 per cubic meter.

New industries and captive plants, which already attained commitments or demand notes from companies for raising gas loads, must pay 50 per cent, or half of the new gas commitments, at current rates.

On the other hand, the remaining half would be paid in accordance with the proposed rate at Tk 75.72 per cubic metre LNG, the tariff hike proposal says.

Besides, the owners of existing industries and plants must pay a tariff at Tk 75.72 per cubic metre for utilising additional gas above their existing approved loads.

To calculate import prices for fixing tariff, state-run gas marketing and distribution companies will calculate three months' average prices of overall LNG import costs from long-term LNG suppliers and spot LNG suppliers.

Prof. M. Shamsul Alam, energy adviser to CAB, read out a written statement of the rights group during the press conference.

Humayun Kabir Bhuiyan, CAB general secretary, also spoke on the occasion.

Azizjst@yahoo.com


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