Manufacturers in the country’s different sectors have warned that the hike in the prices of gas for new industrial and captive connections and for existing industrial connections in case of additional use would discourage new investments.
On Sunday, the Bangladesh Energy Regulatory Commission hiked the gas price by 33 per cent for both captive and industrial connections with immediate effect.
According to a statement issued by the BERC, new industrial connections will have to pay Tk 40 per cubic metre instead of Tk 30. Similarly, new captive users will have to pay Tk 42 per cubic metre, which was previously Tk 31.5.
The existing consumers will have to pay the previous rate, but in the case of use beyond their sanctioned load, they will have to pay following the new tariff.
Moreover, those who have received primary approval for new connections will have to pay new tariff if their usage exceeds 50 per cent of their sanctioned load.
Showkat Aziz Russell, president of the Bangladesh Textile Mills Association, told New Age that the increase was unacceptable under any circumstances. Instead the price should be brought down to about Tk 20 now, he said.
‘BPC, Titas, and similar agencies are operating with a profit-first mindset, but their activities are benefiting neither consumers nor industries,’ he added.
Referring to the recently held investment summit in the capital Dhaka, he said that ensuring energy was the key to attracting foreign investment.
‘But how can we expect investors to come when we are raising gas prices yet again?’ he questioned, warning that such hikes would discourage new investments and hinder employment generation.
Talking to New Age, Faruque Hassan, a former president of the Bangladesh Garment Manufacturers and Exporters Association, said that this was not the right time to hike the gas price, as the industries were reeling from increased bank rates and US tariff issues.
He also said that this hike would significantly impact new investments in the industrial sector, which would also hamper employment generation.
He urged the government to revise the hiked prices of gas.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, told New Age that this untimely hike would reduce new industrial investments.
‘Recently, we concluded an investment summit. Hiking gas prices after holding an investment summit to attract foreign investment is contradictory,’ he added, saying that it would discourage investors.
Moynul Islam, president of the Bangladesh Ceramic Manufacturers and Exporters Association, said that this gas price hike would not lead to developing gas-based industries in the country.
‘The ceramic industry is a gas-intensive industry and like KAFCO, EPZ and economic zones, we also need supply gas on an urgent and uninterrupted basis,’ he added.
He also said that the hike in gas prices at a time when the sector was facing a hike in bank rates and a reduction in incentives would impact negatively new investments.
Md Shahriar, president of the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association, told New Age that the hike in gas price would create discrimination between old and new investors.
‘Many investors planned to make new investments, but they would step back now due to the hike,’ he added.
