Gas price hike may affect business growth: DCCI
Export-led industries may lose global market share, the chamber says
UNB
Dhaka Chamber of Commerce and Industry (DCCI) yesterday said the countrys RMG and other import substitute export-led industries may lose global market share and position due to enhanced production cost if gas price is hiked, reports UNB.
Any gas price hike may affect business growth, said the trade body in a statement expressing their concerns.
When the country is experiencing gas supply stagnation, the proposed maximum 140 per cent tariff rise will adversely affect the growth of export lifeline textile and RMG, leather, shipbuilding, power generation, growing SME sector as well as other gas-intensive manufacturing industries and businesses losing both local and export market competitiveness, the DCCI observed.
In the given circumstances, the trade body expressed deep concern on behalf of cross-sectional business and industry community and advocated for enormous efforts for remarkable improvement of gas supply to meet escalating demand and alternative primary energy sources for energy security.
DCCI also urged the government to formulate minimum of a three-year-long consistent gas tariff and distribution plan in line with exploration and distribution policy aiming to cater to the cumulative, incremental sectoral interests, investment opportunities and propel economic growth trajectory avoiding commotion in the years to come across the country.
After a gap of nine months, the government is planning to further raise the tariff of natural gas as reported by the press recently, it observed.
Gas price for captive power plants per cubic metre is believed to be approximately increased by 140 per cent, domestic gas maximum 85 per cent, 83 per cent CNG price, commercial gas by 72 per cent in spite persistent acute gas supply shortage and diminishing global fuel price, said the DCCI statement.
Besides, the DCCI said, high priced mass transport network will result soaring cost of doing business, cost of supply chain and hurting cost-efficient investment privileges above all potential FDI exposure.
It may create an excuse for illegal and immoral manipulation for price hike affecting purchasing power of common people.
The DCCI said the ripple effects of assumed industrial and export strength slowdown may worsen the cost of living, hold back the growth spree and economic visions of Bangladesh.
