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Four prominent business associations, including BGMEA and BKMEA, have urged the interim government to halt the recently-announced gas-price hike for industrial and captive power plants.
In a joint letter submitted to Muhammad Fouzul Kabir Khan, adviser for Power, Energy, and Mineral Resources on Monday, the business leaders called for an urgent review of the decision, citing potential repercussions for the industrial sector. The apparel and textile industry leaders have also expressed grave concern over a proposed 150 per cent increase in gas prices for industrial use.
The letter said, "The proposed increase to Tk 75 per cubic meter could raise annual costs for the garment sector by Tk 63 billion. Captive power plants could face an additional cost of Tk 116.75 billion, totalling Tk 180 billion. This increase, equal to 4.2 per cent of annual export revenue, would undermine the sector's global competitiveness."
The signatories of the appeal include Md Anwar Hossain, administrator of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA); Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA); Shawkat Aziz Russel, president of the Bangladesh Textile Mills Association (BTMA); and Hossain Mehmood, chairman of the Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA).
The letter urged the government to establish a competitive and sustainable gas pricing framework through consultations with stakeholders. It also highlighted the need for immediate measures to alleviate the ongoing gas crisis in the industrial sector. Suggestions included utilizing gas cylinders from CNG refueling stations to supply factories.
The business groups further called for mid- and long-term strategies with clear action plans to ensure uninterrupted gas supplies and bolster the country's energy security.
The letter referenced recent media reports suggesting that the government is planning another hike in gas prices for industrial use, increasing the cost per cubic meter by 150 per cent to Tk 75. The leaders also warned that implementing such a price increase could have far-reaching negative implications for industrial growth and the broader economy.
They further stated that the textile and apparel sectors are still recovering from the impacts of the COVID-19 pandemic and are now grappling with challenges posed by the Russia-Ukraine war, the Middle East conflict, and global inflationary pressures.
Although there has been a positive export growth in recent months, stagnation persists when compared to the cumulative growth of the past three fiscal years-a situation that poses a significant concern for the sustainable growth of the country's economy.