The Consumers Association of Bangladesh (CAB) has strongly opposed the proposed increase in natural gas tariffs, arguing that it contradicts the government’s commitment to energy sector reforms initiated in July 2024.
In a statement submitted ahead of the Bangladesh Energy Regulatory Commission (BERC) hearing, CAB emphasized that the proposed tariff hike undermines efforts to establish a fair and transparent energy pricing system.
The organisation noted that ensuring equitable pricing was a key demand during last year’s public protests against what it described as unjust energy policies.
CAB General Secretary Advocate Humayun Kabir Bhuiyan highlighted that for the past 15 years, Bangladesh’s energy sector has suffered from widespread financial mismanagement, excessive subsidies, and unjustified expenditures.
These inefficiencies, he argued, have led to repeated tariff hikes that burden consumers while failing to improve the country’s energy security.
BERC Chairman Jalal Ahmed acknowledged receiving CAB’s letter on the proposed gas tariff hike and stated that the commission would address the concerns during the tariff hearing, scheduled for February 26, 2025.
CAB further pointed out that the Electricity and Energy Supply (Special Provisions) Act, 2010 enabled non-competitive investments in the power sector, leading to inflated costs and inefficiencies.
Additionally, a 2023 amendment to the BERC Act, 2003 (Section 34A) transferred tariff-setting authority to the Ministry of Power, Energy, and Mineral Resources, allowing frequent price increases without independent regulatory oversight.
Following nationwide protests and a change in government, these controversial provisions were repealed in July 2024.
The new administration assured that energy pricing would be revised to reflect actual costs and eliminate unnecessary expenses.
However, CAB argues that the latest tariff hike proposal contradicts these commitments and risks pushing energy prices to unsustainable levels, disproportionately impacting consumers.
CAB’s Recommendations
As part of its recommendations, CAB has urged BERC to conduct a comprehensive review of past cost adjustments in the energy sector from 2010 to 2024, ensure future pricing decisions are based on transparency and consumer interests, and halt any further tariff increases until the sector undergoes comprehensive reforms to eliminate inefficiencies and prevent consumer exploitation.
CAB stressed that maintaining fair pricing policies is essential for public trust in the government’s energy sector reforms.