Energy Bangla

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Dhaka Thursday,  Mar 28, 2024

Gas price to rise again!

EB Report

Gas price is about to go up for once more. The Bangladesh Energy Regulatory Commission (BERC) is preparing to hike the gas prices soon.

BERC related sources have confirmed that the Commission has finalized their decision and the new price will be declared soon.

Earlier on last August, the BERC organized a public hearing in response to the ‘gas transmission tariff and price hike proposals’ submitted by the 7 state-owned gas transmission and distribution companies. The Technical Evaluation Committee (TEC) then suggested not raising the tariff and price of gas in most of the cases. However, the commission is now on its way to hike the price of all types of gas.

Petrobangla proposed a 65.45% hike and asked for an increase in bulk gas price from Tk. 6.29 to Tk. 10.29 per cubic meter on weighted average which means an additional revenue of around 8,000 crores Tk per annum for the Petrobangla. Petrobangla claimed that the newly fixed 55% SD and VAT are among one of the causes of the price hike proposal.

However, Petrobangla had an amount of Tk 2,700 crores as an FDR at that time and the TEC found that the state-run company lacks only Tk 840 crores to buy gas from the IOCs (International Oil Companies). It suggests that the Petrobangla shouldn’t require any extra money to run itself, thus making the price hike proposal pointless.

Sources claimed that the price of household gas for a double burner and a single burner may go up to Tk 1,000 and Tk 800 respectively.

Before this, on 1st September 2015, the BERC raised the price of household gas for double and single burner to Tk 650 and Tk 600 respectively.

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