Already reeling under short supply of gas, the readymade garment (RMG) industry of Bangladesh would now have to pay 22.7 per cent more for gas after the Bangladesh Energy Regulatory Commission (BERC) on Thursday decided to levy the new tariff from March 1, 2017.
If that was not all, BERC has decided to hike the rates in June again, which would consequently force the consumers to shell out almost 50 per cent more.
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“The prices are being increased in two phases so that consumers don’t feel a sudden pressure on their purchasing power,” reportedly maintained Monowar Islam, Chairman, BERC, after announcing the decision at a press conference in Dhaka.
Reacting to BERC’s decision to hike gas prices, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Abdul Matlub Ahmad reportedly underlined that it would push up the production cost thereby rendering export-oriented industries lose competitiveness in the international market. “Similarly, the prices of some goods will rise on the domestic market because of increased cost of production. And inflation will rise,” he told a Bangladesh news daily.
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Energy adviser of the Consumers Association of Bangladesh (CAB), Prof. M Shamsul Alam, termed the move ‘illogical’ while maintaining that the consumers’ association had opposed the hike during public hearings held by the BERC in August last year. He also added that CAB would challenge the decision in the court.
After the hike, industries that use generators for producing electricity from gas will see gas price rise to BDT 8.98 per cubic metre from present BDT 8.36, which would subsequently reach BDT 9.62 in June.
