Thursday, 7 July, 2022

Gas tariff hiked by 22.78pc

Single burner will cost Tk 990, double burner Tk 1,080 per month.

  • Special Correspondent
  • 6 June, 2022 12:00 AM
  • Print news
Gas tariff hiked by 22.78pc

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Natural gas price has been hiked by 22.78 per cent on an average for the retail consumers with effect from June despite opposition from consumers rights groups and trade bodies.

As per the new tariff, the average gas price has been raised to Tk 11.91 per cubic metre from the existing Tk 9.70 per cubic metre (CM).

Bangladesh Energy Regulatory Commission (BERC) announced the new tariff on Sunday, noting that volatile global Liquefied Natural Gas (LNG) market and a fall in local gas output have forced them to adjust the gas tariff.

The fertilizer sector witnessed the highest 259.55 percent hike in gas tariffs.

“We have decided to raise the gas tariff as a fall in local natural gas production and the volatility in the global LNG market amid the Russia-Ukraine War has made natural gas costlier,” Mohammed Abu Faruque, acting BERC chairman has said. 

The Petrobangla will reach a breakeven point after the gas tariff adjustment by meeting the requirement of Tk 367.80 billion from the current month, he informed. 

Of the total Tk 367.80 billion, Petrobangla will spend Tk 224.12 billion on LNG import, Tk 44.62 billion or 15 percent on payment of VAT on LNG import, Tk 12.06 for gas development fund, Tk 920 million on research fund, Tk 14.92 billion on wheeling charge and Tk 4,92 billion on gas distribution charge, BERC said.

As per the new tariff, the household consumers will pay Tk 990 per month for a single burner, a 7.03 percent rise from the previous Tk 925 a month. They will pay Tk 1080 per month for a double burner, up from the existing Tk 975 a month.

Besides, household pre-paid meter users will have to pay an additional 42.86 percent tariff.

“We are raising the gas tariff for electricity generation to Tk 5.02 per cubic meter,” Mohammed Abu Faruque said.

He added the regulator has decided not to raise the CNG tariff as the adjustment of the CNG tariff will affect the consumers badly.

Addressing the press conference, Bangladesh Knitwear and Manufacturer Association (BKMA) Executive president Md Hatem said the request of the manufacturers was ignored as they requested the regulator to raise the tariff after six months.

He also drew attention to the system losses in the natural gas sector.

Bangladesh Textile Mills Association (BTMA) President Md Ali Khokon expressed his disappointment over 16 per cent tariff hike for captive power plants, arguing that the regulator should have considered the huge system loss of Tk 30 billion in energy sector.

He also raised questions about the mismatch between the regulatory announcement and BERC evaluation committee report.

In response, regulator said the FBCCI and BTMA have expressed their opinion on a rational tariff hike and we considered the effect on the export-oriented sector while adjusting the tariff.

The regulator also said it has considered importing 645mmbtu of LNG import on an average.

The regulator also said they have issued specific directives for Petrobangla about the illegal gas connections and to increase the output from local gas fields.