CNG price hike by next week likely
FE Report | Wednesday, 9 March 2011
FE Report
Bangladesh Energy Regulatory Commission (BERC) is set to raise compressed natural gas (CNG) price by next week. The commission help a public hearing on Petrobangla's CNG tariff hike proposal Tuesday. "We have heard from public today. The decision on the CNG price hike might come by next week," BERC Chairman Syed Yusuf Hossain told the FE after the public hearing. The commission chairman, however, did not disclose the extent of the hike but said that it will be decided after scrutinising the final arguments to be submitted by the stakeholders by March 14 next. CNG price hike is necessary to ensure sound growth of the country's energy sector, said the BERC Chairman. State-owned Petrobangla submitted a proposal to the BERC on October 14 last year to raise the CNG price by over 24 per cent to Tk 24.90 per cubic metre from the current price of Tk 16.75. During the hearing Tuesday Petrobangla Chairman Dr Hussain Monsur said the CNG price hike has been proposed to ensure its rational market price compared to the prices of other fuels. "CNG price is much lower compared to the prices of other liquid fuels like petrol, octane and diesel," said Petrobangla Chairman. Lower price of CNG has pushed up its consumption abnormally and a large number of vehicles are entering the capital causing traffic congestion, he argued. Mr Monsur said that the CNG price in Bangladesh is 35 per cent lower than India and Pakistan. The cheap CNG has benefited the rich most. Almost all of them now use gas to run their cars and gas-guzzling Pajeroes, Lexuses etc, said Petrobangla Chairman.
Bangladesh Energy Regulatory Commission (BERC) is set to raise compressed natural gas (CNG) price by next week. The commission help a public hearing on Petrobangla's CNG tariff hike proposal Tuesday. "We have heard from public today. The decision on the CNG price hike might come by next week," BERC Chairman Syed Yusuf Hossain told the FE after the public hearing. The commission chairman, however, did not disclose the extent of the hike but said that it will be decided after scrutinising the final arguments to be submitted by the stakeholders by March 14 next. CNG price hike is necessary to ensure sound growth of the country's energy sector, said the BERC Chairman. State-owned Petrobangla submitted a proposal to the BERC on October 14 last year to raise the CNG price by over 24 per cent to Tk 24.90 per cubic metre from the current price of Tk 16.75. During the hearing Tuesday Petrobangla Chairman Dr Hussain Monsur said the CNG price hike has been proposed to ensure its rational market price compared to the prices of other fuels. "CNG price is much lower compared to the prices of other liquid fuels like petrol, octane and diesel," said Petrobangla Chairman. Lower price of CNG has pushed up its consumption abnormally and a large number of vehicles are entering the capital causing traffic congestion, he argued. Mr Monsur said that the CNG price in Bangladesh is 35 per cent lower than India and Pakistan. The cheap CNG has benefited the rich most. Almost all of them now use gas to run their cars and gas-guzzling Pajeroes, Lexuses etc, said Petrobangla Chairman.