The Titas Gas Company's proposal of a 103 per cent rise in the gas price faced stiff opposition from different consumer groups at a public hearing of the Bangladesh Energy Regulatory Commission yesterday. The consumer groups said that if the gas price were raised, it would have a negative impact on public life, as it would lead to a rise in the transport cost, electricity tariff and the price of other consumer goods.

BERC chairman Monwar Islam presided over the public hearing at the TCB Auditorium, while other members of the watchdog body were present on the occasion. In the 102.85 per cent average hike, the largest gas distribution company proposed to raise the price of household gas for a single-burner oven from Tk. 750 to Tk. 1,350 and a double-burner oven from Tk. 800 to Tk. 1,440.

Titas sought a 208 per cent hike for power plants, proposing Tk. 9.74 per cubic metre (cu m) for power plants in place of the exiting price of Tk. 3.16.

The gas price for fertiliser factories were proposed to be hiked the highest at 211 per cent, where it sought the price to be Tk. 8.44 per cu m against the existing rate of Tk. 2.71 per cu m. The captive power plants' gas prics was proposed to be Tk. 18.88 per cu m against Tk. 9.62, while the industrial gas price was proposed at Tk. 18.04 per cu m against the existing Tk. 7.76 per cu m. The CNG gas price was proposed to be Tk. 48.10 per cu m against the existing rate of Tk. 32 per cu m.

However, no price hike was proposed for the gas used by household and commercial consumers. A technical evaluation committee of the BERC analysed the Titas Gas proposal, but did not recommend the gas price rise. Instead, it put forward several suggestions for structural changes in the mechanism of fixing the gas price. Installation of gas meters, fixing of the gas price based on actual consumption, and incentives for the regular payment of bills by consumers were among the recommendations.

Advisor to the Consumers Association of

Bangladesh (CAB), Prof. M Shamsul Alam, said that Titas Gas had over Tk. 2,000 crore surplus funds in its hand and lent the money to different organisations. So, there was no justification in raising its gas price, he noted, adding that the company realises bills for 88 cu m use of gas from a household consumer, while such use is about 20 cu m.

Titas officials illegally provided connections to a large number of consumers by taking bribes, he alleged, saying that the gas sector was facing a similar disaster like that of the country’s banking sector.

Eminent energy expert Prof. Nurul Islam said Titas Gas lacked transparency in fixing its gas price for different consumer groups.