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Major trade bodies in Bangladesh's manufacturing industries demand of the government to eschew making any hike in gas prices rather to ditch the proposal of the regulator, in fear of fresh business setbacks.
Terming such proposal made by Bangladesh Energy Regulatory Commission (BERC) 'against development and stability of the country', leaders of the chambers and corporates have said the businesses are alarmed due to such proposal of fixing gas tariffs based on LNG-import rate for new connections and increase in the load on existing ones.
The demand and observations came Sunday in a joint letter written to the BERC by the leaders of Chamber of Industries (BCI), Dhaka Chamber of Commerce and Industry (DCCI), Metropolitan Chamber of Commerce and Industry (MCCI), Bangladesh Textile Mills Association (BTMA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and administrator of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Meghna Group, City Group, Uttara Motors and Lafarge Holcim Bangladesh PLC top officials also signed on the written opinion letter.
The letter mentions that leaders of the manufacturing sectors met on March 06 at BCI and opined that price hike would cause "serious damage to the industry, business and the country as a whole".
They in the meeting rather proposed that the existing gas price be reduced and fixed as the blended rate of Tk 24.39 per cubic meter to help the industry sustain.
The proposed gas-price hike has left industry and business in an uncertain situation, they have said in the letter, adding that they don't understand the reasons of gas price hike at a time when continuation of production and fresh investment in setting new industries are required for employment generation and stability.
"Rather it seems that the move has proposed so that no new industry is set up and production in the existing ones comes to a halt," they note in the letter.
They also have note that uninterrupted gas supply was promised when the unilateral gas-price hike was made in 2023 but industries are not getting the required pressure and production has been disrupted due to 30-percent-to 40-percent less gas than the demand.
As businesses are incurring losses for less production due to gas shortage, they believe the distribution companies should compensate them.
The business leaders rather propose gas supply must be increased by increasing efficiency of gas-distribution companies and their proper waste management and alternative energy, especially coal-based power plants should be run at full capacity. "Moreover, it is possible to reduce gas prices and reduce government subsidies by withdrawing double VAT and source tax on LNG imports and tax imposed by the government on supply and various charges imposed by Petrobangla/BERC," reads the letter.
Production in factories located in Gazipur, Ashulia, Savar, Narayanganj, Munshiganj, Bhaluka and Narsingdi decreased up to 40 per cent while production decreased by 50 per cent in industries like ceramics and steel mainly due to absence of uninterrupted gas supply, it adds.
The leaders in the letter also claim industrial investment, credit growth in the private sector have declined in recent times due to the unavailability of uninterrupted gas and an abnormal price hike of gas and request not to increase the gas prices rather dismiss the price-hike proposal for the greater sake of the private sector which creates 90 per cent of the country's total employment.
Munni_fe@yahoo.com