Gas price hike, again?

just seven months after the last price hike, the present proposal for increase would largely be considered as an ill-conceived one

The gas distribution companies again want to increase gas price and they have sent a uniform proposal to Bangladesh Energy Regulatory Commission (BERC) in this regard recently. This time the distributors have proposed on an average 87.66 per cent rise, not certainly by a small margin. It was not long ago, in September last year, the government increased gas price by an average of 27.56 per cent.
Though gas in Bangladesh is still a low-priced commodity, hike after a short interval of just 7 months would not go well with the consumers in Bangladesh. In the last time, the highest 122.22 per cent hike on domestic use of gas was proposed by the gas distribution companies. At that time a household used to pay Tk 450 for a double-burner stove and Tk 400 for a single burner stove for gas. But ultimately it was settled at the current Tk 650 for a double-burner stove and Tk 600 for a single-burner stove.
As for reasons for the hike then, Petrobangla argued that the rural customers paid four times higher for a single cylinder of gas than an inhabitant in the capital did for domestic burners. It was also mentioned that gas price had not been increased for a long time. This time the reason for the hike proposal, as mentioned by the managing director of Titas, is that the company is paying a larger amount as wage payments to its employees because of the new pay scale. The low bank interest rates that have come down from 12-13 per cent to its present 6-7 per cent are also among the reasons.
All these points are valid, we think, but to some extent. But it would have been better on the part of Titas to wait at least one year from the last date of adjustment of price and justifiably propose around not more than a 30 per cent hike than the present 87.66 per cent on an average. That would have been an acceptable line of action for increasing price. Now the present proposal for hike would largely be considered as an ill-conceived thing.
Price hike by the government for any service is never a welcome move for the people of a poor country like ours, yet sometimes it becomes necessary to readjust prices as necessity demands. But it needs to become careful that even that change must not be a burden for the people. That is why the present proposal for hike would draw flaks from all strata of life, because it will create unnecessary sudden strain on the gas users.

 

Gas price hike, again?

just seven months after the last price hike, the present proposal for increase would largely be considered as an ill-conceived one

The gas distribution companies again want to increase gas price and they have sent a uniform proposal to Bangladesh Energy Regulatory Commission (BERC) in this regard recently. This time the distributors have proposed on an average 87.66 per cent rise, not certainly by a small margin. It was not long ago, in September last year, the government increased gas price by an average of 27.56 per cent. Though gas in Bangladesh is still a low-priced commodity, hike after a short interval of just 7 months would not go well with the consumers in Bangladesh. In the last time, the highest 122.22 per cent hike on domestic use of gas was proposed by the gas distribution companies. At that time a household used to pay Tk 450 for a double-burner stove and Tk 400 for a single burner stove for gas. But ultimately it was settled at the current Tk 650 for a double-burner stove and Tk 600 for a single-burner stove. As for reasons for the hike then, Petrobangla argued that the rural customers paid four times higher for a single cylinder of gas than an inhabitant in the capital did for domestic burners. It was also mentioned that gas price had not been increased for a long time. This time the reason for the hike proposal, as mentioned by the managing director of Titas, is that the company is paying a larger amount as wage payments to its employees because of the new pay scale. The low bank interest rates that have come down from 12-13 per cent to its present 6-7 per cent are also among the reasons. All these points are valid, we think, but to some extent. But it would have been better on the part of Titas to wait at least one year from the last date of adjustment of price and justifiably propose around not more than a 30 per cent hike than the present 87.66 per cent on an average. That would have been an acceptable line of action for increasing price. Now the present proposal for hike would largely be considered as an ill-conceived thing. Price hike by the government for any service is never a welcome move for the people of a poor country like ours, yet sometimes it becomes necessary to readjust prices as necessity demands. But it needs to become careful that even that change must not be a burden for the people. That is why the present proposal for hike would draw flaks from all strata of life, because it will create unnecessary sudden strain on the gas users.