LNG import raising gas prices, public hearing begins today

United News of Bangladesh . Dhaka | Published: 00:37, Jun 11,2018 | Updated: 00:40, Jun 11,2018

 
 

All state-owned gas distribution and transmission companies including Titas Gas have sought to hike gas prices on an average 75 per cent for different consumer groups.
Such price increase proposals, however, were not meant for household and commercial consumers. If it came in force, hike would mainly affect large scale consumers like power plants, fertiliser factories, captive power plants, industries, and CNG refuelling stations.
Against this backdrop, hearing on gas price hike proposal at retail level was going to start from today at the Bangladesh
Energy Regulatory Commission.
The watchdog is organising the hearing at TCB Auditorium in the city in response to appeals from different state-owned entities in the country’s gas sector.
Gas companies argued that import of liquefied natural gas would push up their cost substantially.
‘So, we have no alternative but to raise our gas prices if we want to sustain and continue our service,’ said a top official at the Titas Gas Transmission and Distribution
Company Ltd.
The official sources said that the household and commercial (hotel, restaurants, etc) consumers were kept outside the gas price hike purview considering the upcoming general election billed for December this year.
An official document, obtained by the agency, revealed that the largest gas distribution company Titas had proposed to raise 206 per cent price for power plants as it proposed Tk 10 per cubic meter for power plants in place of exiting price of Tk 3.16.
The gas price for fertiliser factories was proposed to be as high as 372 per cent where it sought the price to be Tk 12.80 per CM against the existing rate of Tk 2.71 per CM.
The captive power plants’ gas price was proposed to be Tk 16 per CM against Tk 9.62 while industries’ gas price was proposed at Tk 15 per CM against the existing Tk 7.76 per CM and CNG gas price was proposed to be Tk 40 per CM against existing rate of Tk 32. 

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