Gas price hike by next week likely

The Bangladesh Energy Regulatory Commission (BERC) is all set to hike gas tariffs for all categories of consumers by next week. According to the new rate, the price of gas for stoves with two burners will be Tk 1,000, up from Tk. 650, while for single-burner stoves it will be Tk. 800 (up from Tk. 600).
BERC secretary Faizur Rahman told The Independent yesterday that the energy regulator has already completed all formalities and paperwork to rejig gas prices. This comes in the wake of the public hearing it had conducted in August last year. The newly-appointed chairman and four other board members have also held a meeting on this issue. The price hike might come at any time, he added. Regarding the proposed price hike, AKM Monowar Hossain Akand, BERC’s director (gas), said, “The price of compressed natural gas (CNG) for vehicles could see a hike of up to Tk. 40 per cubic metre. The current tariff is Tk. 32 per cubic metre for CNG-driven vehicles.” Most of the sectors, such as power production, fertiliser
factories, commercial and industrial establishments, tea gardens, etc., will undergo the gas price hike, he disclosed.
A BERC official told The Independent that the plan of gas price hike was chalked out in December itself, but as it had no chairman and the commission had only a single member, the gas price could not be hiked.
On February 1, the government finally appointed a new chairman and three new members for BERC, paving the way for this price hike.
The immediate past secretary of the Power Division, Monwar Islam, was made the new chief of the energy regulator. Former chief engineer of Bangladesh Power Development Board, Md. Mizanur Rahman, former managing director of Titas Gas Transmission and Distribution Company Ltd, Abdul Aziz Khan, and former additional secretary, Mahmudul Haq Bhuiyah, were made the new members of the commission.
A member of the new commission, who preferred to remain unnamed, confirmed to The Independent the recent BERC meeting on the gas price hike. He, however, declined to comment whether or not the new price would become effective from next week.
In August last year, BERC held an eight-day public hearing on gas transmission tariffs and price hike proposals submitted by the state-owned gas transmission and distribution companies.
The companies were: Titas Gas Transmission and Distribution Company Ltd, Pashchimanchal Gas Company Limited, Bakhrabad Gas Distribution Company Limited, Karnaphuli Gas Distribution Company Limited, Jalalabad Gas Transmission and Distribution System Limited and Sundarban Gas Company Limited.
According to their proposals, domestic users would have to pay Tk. 1,200 every month instead of Tk. 650 for double-burner stoves, a hike of 85 per cent. Besides, Tk. 1,100 had been proposed for single burners, up from the current Tk. 600. Consumers using meter-based burners would have to pay Tk. 16.80 instead of Tk. 7 per cubic metre of gas, an increase of 140 per cent, according to the proposals. The proposals also sought increases in prices of gas used for commercial purposes, in power plants and in tea gardens. Again, fertiliser companies and industrial users would also face a price hike. The Gas Transmission Company Limited urged the BERC to raise the gas transmission tariff from Tk. 0.1565 to Tk. 0.4213 per cubic metre.

 

Gas price hike by next week likely

The Bangladesh Energy Regulatory Commission (BERC) is all set to hike gas tariffs for all categories of consumers by next week. According to the new rate, the price of gas for stoves with two burners will be Tk 1,000, up from Tk. 650, while for single-burner stoves it will be Tk. 800 (up from Tk. 600). BERC secretary Faizur Rahman told The Independent yesterday that the energy regulator has already completed all formalities and paperwork to rejig gas prices. This comes in the wake of the public hearing it had conducted in August last year. The newly-appointed chairman and four other board members have also held a meeting on this issue. The price hike might come at any time, he added. Regarding the proposed price hike, AKM Monowar Hossain Akand, BERCs director (gas), said, The price of compressed natural gas (CNG) for vehicles could see a hike of up to Tk. 40 per cubic metre. The current tariff is Tk. 32 per cubic metre for CNG-driven vehicles. Most of the sectors, such as power production, fertiliser factories, commercial and industrial establishments, tea gardens, etc., will undergo the gas price hike, he disclosed. A BERC official told The Independent that the plan of gas price hike was chalked out in December itself, but as it had no chairman and the commission had only a single member, the gas price could not be hiked. On February 1, the government finally appointed a new chairman and three new members for BERC, paving the way for this price hike. The immediate past secretary of the Power Division, Monwar Islam, was made the new chief of the energy regulator. Former chief engineer of Bangladesh Power Development Board, Md. Mizanur Rahman, former managing director of Titas Gas Transmission and Distribution Company Ltd, Abdul Aziz Khan, and former additional secretary, Mahmudul Haq Bhuiyah, were made the new members of the commission. A member of the new commission, who preferred to remain unnamed, confirmed to The Independent the recent BERC meeting on the gas price hike. He, however, declined to comment whether or not the new price would become effective from next week. In August last year, BERC held an eight-day public hearing on gas transmission tariffs and price hike proposals submitted by the state-owned gas transmission and distribution companies. The companies were: Titas Gas Transmission and Distribution Company Ltd, Pashchimanchal Gas Company Limited, Bakhrabad Gas Distribution Company Limited, Karnaphuli Gas Distribution Company Limited, Jalalabad Gas Transmission and Distribution System Limited and Sundarban Gas Company Limited. According to their proposals, domestic users would have to pay Tk. 1,200 every month instead of Tk. 650 for double-burner stoves, a hike of 85 per cent. Besides, Tk. 1,100 had been proposed for single burners, up from the current Tk. 600. Consumers using meter-based burners would have to pay Tk. 16.80 instead of Tk. 7 per cubic metre of gas, an increase of 140 per cent, according to the proposals. The proposals also sought increases in prices of gas used for commercial purposes, in power plants and in tea gardens. Again, fertiliser companies and industrial users would also face a price hike. The Gas Transmission Company Limited urged the BERC to raise the gas transmission tariff from Tk. 0.1565 to Tk. 0.4213 per cubic metre.