BERC to announce gas price hike today
Sunday, 30 November 2008
FE Report
The Bangladesh Energy Regulatory Commission (BERC) is set to announce the gas price hike in the range between 10 per cent and 15 per cent for all types of consumers today (Sunday), officials said
The new gas tariff will, however, be effective sometime between January and March next year.
This will be the first time in four years since the gas tariff hike was made affective in January 1, 2005.
"We will announce our decision about the gas price hike Sunday afternoon. A commission meeting in the morning will finalise the extent of the hike," the BERC chairman Golam Rahman told the FE Saturday night.
State-owned Petrobangla in June 2008 placed a proposal for enhancing the natural gas tariff by 53 per cent per cent on an average from Tk Tk 92.84 per Mcf (1,000 cubic feet) to Tk 142.75 per unit to offset its losses.
It argued that the company incurs losses as it purchases gas at higher prices from the international oil companies (IOCs) and sells at lower rates.
In its gas price hike proposal the Petrobangla argued for a hike to Tk 93.73 per MCF from existing Tk 73.91 per MCF for power plants owned by the Bangladesh Power Development Board (BPDB), Independent Power Producers (IPP) and small power plants (SPPs).
It proposed the hike to Tk 93.73 per Mcf from Tk 63.41 per Mcf for fertiliser factories, while Tk 182.25 per Mcf from existing Tk 105.59 for captive power plants.
The Petrobangla also proposed the gas tariff at Tk 182.25 per Mcf for industry from existing Tk 148.13 per Mcf, Tk 182.25 for tea-estate from Tk 148.13 per Mcf, Tk 291.59 per Mcf for commercial usage from existing Tk 233.12 per Mcf.
For domestic users the gas price has been proposed at Tk 550 for single burner from the existing rate of Tk 350 and Tk 600 for double burner from existing Tk 400.
The BERC held hearing in September 2008 on the Petrobangla-proposed gas tariff hike for all types of consumers.
A good number of stakeholders including trade bodies, gas distribution companies, consumers association, non-government organisations and law consultancy firms took part in the hearing opposing the big tariff hike proposal from Petrobangla.
The Bangladesh Energy Regulatory Commission (BERC) is set to announce the gas price hike in the range between 10 per cent and 15 per cent for all types of consumers today (Sunday), officials said
The new gas tariff will, however, be effective sometime between January and March next year.
This will be the first time in four years since the gas tariff hike was made affective in January 1, 2005.
"We will announce our decision about the gas price hike Sunday afternoon. A commission meeting in the morning will finalise the extent of the hike," the BERC chairman Golam Rahman told the FE Saturday night.
State-owned Petrobangla in June 2008 placed a proposal for enhancing the natural gas tariff by 53 per cent per cent on an average from Tk Tk 92.84 per Mcf (1,000 cubic feet) to Tk 142.75 per unit to offset its losses.
It argued that the company incurs losses as it purchases gas at higher prices from the international oil companies (IOCs) and sells at lower rates.
In its gas price hike proposal the Petrobangla argued for a hike to Tk 93.73 per MCF from existing Tk 73.91 per MCF for power plants owned by the Bangladesh Power Development Board (BPDB), Independent Power Producers (IPP) and small power plants (SPPs).
It proposed the hike to Tk 93.73 per Mcf from Tk 63.41 per Mcf for fertiliser factories, while Tk 182.25 per Mcf from existing Tk 105.59 for captive power plants.
The Petrobangla also proposed the gas tariff at Tk 182.25 per Mcf for industry from existing Tk 148.13 per Mcf, Tk 182.25 for tea-estate from Tk 148.13 per Mcf, Tk 291.59 per Mcf for commercial usage from existing Tk 233.12 per Mcf.
For domestic users the gas price has been proposed at Tk 550 for single burner from the existing rate of Tk 350 and Tk 600 for double burner from existing Tk 400.
The BERC held hearing in September 2008 on the Petrobangla-proposed gas tariff hike for all types of consumers.
A good number of stakeholders including trade bodies, gas distribution companies, consumers association, non-government organisations and law consultancy firms took part in the hearing opposing the big tariff hike proposal from Petrobangla.