FICCI, EuroCham seek fair, predictable pricing policy

Leading foreign trade bodies in Bangladesh have expressed concern over the recent gas tariff hike and called for fair and predictable pricing policy to maintain the investment climate in the country.

Foreign Investors' Chamber of Commerce and Industry (FICCI) and European Union Chamber of Commerce in Bangladesh (EuroCham) expressed the concern in separate statements issued here on Tuesday.

While FICCI fully supports the government's objective of ensuring a sustainable and reliable energy supply, it said the newly announced tariff mechanism risks creating unintended barriers for new and expanding industries.

Under the current proposal, businesses with new Gas Sales Agreements (GSAs), increased demand, or recent connections will face significantly higher tariffs compared to existing customers - even within the same industrial classification, the chamber stated.

FICCI President Zaved Akhtar stated: "A transparent and equitable energy pricing framework is fundamental to sustaining investor confidence and industrial growth. While we understand the evolving demands of energy management, we urge BERC to revisit this approach and ensure that policy changes align with the broader goals of economic development and FDI attraction."

During the public hearing held on February 26 last, industry stakeholders collectively expressed strong reservations about the proposed tariff structure.

FICCI emphasises the importance of continuing dialogue with all relevant stakeholders, including foreign and domestic investors, to ensure that energy reforms support inclusive and sustainable industrial growth, said the statement.

In a separate statement, EuroCham acknowledges the government's efforts toward a sustainable energy future and appreciates the progress made in energy sector reforms.

However, the chamber remains concerned about the recently announced gas tariff structure by the Bangladesh Energy Regulatory Commission (BERC), which introduces differential pricing based on industrial consumers' contractual timelines and gas connections.

While recognising the complexity of energy policy, EuroCham believes that the current model-placing higher tariffs on new and expanding industries-may unintentionally undermine Bangladesh's competitiveness and investment appeal, it said.

EuroCham said fragmented energy costs within the same sector risk discouraging both foreign and domestic investment at a time when Bangladesh is actively positioning itself as an attractive global business destination.

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