Thursday, 30 June, 2022

BGMEA urges govt not to hike gas, power prices

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government not to increase gas and electricity prices as the step would have adverse impacts on the industry, economy and the public as a whole.

BGMEA President Faruque Hassan today sent a letter to the Ministry of Power, Energy and Mineral Resources in this regard, said a press release, reports BSS.

Defying the enormous odds caused by the Covid-19 pandemic, the RMG industry of Bangladesh has got back on the track of recovering from the fallout though the sector is still facing various challenges, he wrote in the letter.

The RMG industry is already under tremendous pressure from the unusual raw material prices, abnormal shipping cost and increased fuel prices.

Any power tariff hike at this moment will add to the woes of the RMG industry as it will lead to increase in production cost, resulting in erosion of competitiveness.

Such decision will hinder the recovery of the RMG industry from the corona virus pandemic, the letter added.

The ongoing Russia-Ukraine war has pushed up oil prices in the international market while economic recession is feared to hit some European counties, the major export markets of Bangladeshi apparels.

The hike in gas and electricity prices will not only affect the RMG industry, but also will have a serious impact on the public since it will push up the price of basic commodities and services.

Then it would be difficult to manage the pressure of the inflation.

So, considering the overall situation, "we are requesting the government not to increase the prices of gas and electricity, " said BGMEA president in the letter.