The Federation of Bangladesh Chambers of Commerce and Industry on Saturday expressed its concern over the recent proposal of the government to raise the prices of gas.
Price hike of gas is likely to have a detrimental effect on the investment and industrialisation prospects of the country which will in turn hinder the overall growth capacity of the Bangladesh economy, the apex trade body said in a press release.
‘The FBCCI is aware that 74 per cent of our energy needs are met through natural gas and therefore it is imperative that the hike in gas prices will increase the costs of investment, production, and overall business activity,’ the release stated.
For industrialisation, a major challenge apart from infrastructure development is the sustainability of gas supply and uninterrupted power supply, the FBCCI said adding that ensuring adequate availability and stable-long term price policy of electricity, water, gas and land have become crucial to further attract investment in the industrial sector.
In September 2015, gas prices were increased for all consumers.
‘We are apprehensive that further hike in price will not only seriously affect the cost of the utilities but also increase the other associated costs for businesses,’ it said.
This in turn will have the domino effect, leading to an even higher increase of general cost of living affecting every resident of the country, it added.
In this context it is important to identify the other challenges of gas production and efficiency instead of adopting higher price policy, the FBCCI suggested.
The prevalent problems associated with the gas sector could be solved by effectively addressing the issues of illegal gas connection, system loss, illegal billing activities, etc rather than just increasing the price of gas, it said.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Power & Energy