All the state-owned gas distribution and transmission companies including Titas Gas have sought to hike gas prices on an average up to 75% for different consumer groups.
Such price increase proposals, however, are not meant for household and commercial consumers. If it comes into force, the hike will mainly affect large scale consumers like power plants, fertilizer factories, captive power plants, industries, and CNG refueling stations.
Against this backdrop, hearings on gas price hike proposal at retail level will start on Monday at the Bangladesh Energy Regulatory Commission (BERC).
The watchdog body is organizing the hearing at TCB auditorium in the city responding to appeals from different state-owned entities in the country’s gas sector.
Gas companies argued that import of liquified natural gas (LNG) will push up their cost substantially.
“So we have no alternative but to raise our gas price if we want to sustain and continue our service,” said a top official of the Titas Gas Transmission and Distribution Company Ltd.
Official sources said the household and commercial consumers were kept outside the gas price hike purview considering the upcoming general election billed for December this year.
An official document, obtained by UNB, reveals that the largest gas distribution company Titas has proposed to raise the price by 206% for power plants, to Tk10 per cubic meter (CM) from Tk3.16.
The highest raise of 372% was proposed for gas price for fertilizer factories, to Tk12.80 per CM from the existing rate of Tk2.71 per CM.
The captive power plants’ gas price was proposed to be Tk16 per CM against Tk9.62 while Industries gas price was proposed at Tk15 per CM against the existing Tk7.76 per CM and CNG gas price was proposed to be Tk40 per CM against existing rate of Tk32.