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PUBLIC hearing was held by the Bangladesh Energy regulatory Commission (BERC) in response to proposal for increase in gas price. I would like to draw the attention of all concerned to the following factors on gas prices. Industrial development so far achieved in Bangladesh is not satisfactory and rational if looked from a regional angle. All the industrial units are concentrated around Dhaka and Chittagong districts as these areas enjoy very low-cost natural gas fuel. Most of the citizens within and nearby these two districts are the direct beneficiaries of industrial development.
A negligible section of population from the rest of the country has employment opportunities in the industrial units of the above districts. Availability of fuel gas at very low price is one of the significant factors for setting up of industrial units in the above two regions of Bangladesh. The government has the responsibility to develop environment congenial to industrial units in every region of the country. As fuel gas supply in every region of the country is not possible in the near future, the government should make an alternative arrangement for gas supply to the remaining areas of the country.
Gas prices prevailing in Bangladesh are very low in relation to imported liquid fuels. For instance, one cubic metre of CNG costs Tk 35 now, whereas equivalent one-litre diesel costs Tk 57. Gas had 10 categories of prices. The price of CNG is the highest one (Tk 35 per cubic metre) and the cost of gas for fertilizer is the lowest (Tk 2.58 per cubic metre) after the latest revision that was effective from 1 September 2015. Like other commodities, the fuel gas price should have single price category at consumer level. Only wholesale price may be different.
The gas explorer either local or international should get the same price. The local gas explorers are getting Tk 25 for 1,000 cubic feet whereas the international explorers are paying over Tk 200 for every 1,000 cubic feet of gas. At consumer end gas price should be close to equivalent liquid fuel price, that is, one litre diesel should have the same price as one cubic metre of CNG.
In Bangladesh, different fuel gas prices have been prevailing for decades and it needs to be streamlined gradually. The print media reported that six gas marketing companies of the government have sent proposals for gas price increase to BERC. I like to make some suggestions here. The prevailing highest rate of gas should be kept fixed and all other prices may be increased to the next higher level every six months to minimize the price difference.
Liquid fuel price has gone down in international market, prices of liquid fuel can be reduced easily. However, marginal profit against liquid fuel may be ensured for BPC as it incurred huge loss earlier.
The industrial units which require liquid fuel cannot compete with units that consume fuel gas at Dhaka and Chittagong regions. To ensure a balanced growth of all geographic regions it is vital that the price difference between gas and liquid fuel is reduced.
Md Ashraf Hossain
120, Central Bashabo, Dhaka-1214.