Consumer rights groups, business associations, and students have strongly opposed the Bangladesh Energy Regulatory Commission (BERC)-sponsored public hearing on gas tariffs for industrial units and captive consumers.
They have given an ultimatum to the government to scrap the proposed hike within three days.
The stakeholders have condemned the proposed new gas tariff as “discriminatory” and “unjust,” warning that it could cripple the country’s industrial sector.
Some students also protested against the proposed tariff hike and demanded the immediate cancellation of the hearing at the BIAM Centre on Wednesday.
According to Petrobangla, the proposed tariff increase of Tk 75.72 per cubic meter would generate an additional Tk 3,400 crore. However, Petrobangla has also stated that the government could save Tk 6,500 crore by exempting 15 percent of tax and 2 percent of advance income tax (AIT), which would allow the procurement of additional LNG to meet the local gas demand.
The director of finance at Petrobangla made this statement during the hearing and urged BERC and the business community to take proactive roles in addressing the issue.
Prof. Shamsul Alam, energy adviser to the Consumer Association of Bangladesh (CAB), emphasized that BERC should be a strong and independent body that works for the betterment of the masses. He called on the government to identify the volume of irregularities in the power and energy sectors over the past 15 years, and to adjust tariffs accordingly.
Prof. Alam also urged the government to establish a specialized tribunal to hold accountable those responsible for corruption in the energy sector, and called for existing laws to be reinforced to protect consumer rights and ensure transparency in energy pricing.
“We demand the scrapping of the gas tariff hike by Sunday,” Prof. Alam stated.
Former FBCCI President Mir Nasir Uddin, speaking at the hearing, highlighted that the garment sector imports yarn at a cost of USD 2.8 billion, largely due to the high production costs driven by expensive energy. He questioned the 11.12 percent natural gas pilferage claimed as system loss and warned that the proposed tariff hike would halt further industrial expansion. He added that industrial growth has already slowed due to high energy costs.
Bangladesh Chamber of Industries President Anwarul Alam Chowdhury, also attending the hearing, expressed concern that the proposed tariff hike would hinder job creation in the manufacturing sector. “The proposed energy tariff will discourage sector expansion,” he said, suggesting that some vested interests might be working against the national economy.
He also informed the hearing that over 200 garment factories and 20 to 25 textile factories have shut down due to the rising cost of production.
Bangladesh Ceramic Manufacturing and Exporters Association President Moynul Islam stated that gas distribution companies need to enhance their capacity to ensure an uninterrupted supply of gas. “We are already suffering from an acute gas crisis, and the proposed tariff hike will significantly shake the industry,” he said.
Jahangir Alam, President of the Bangladesh Steel Manufacturers Association, pointed out that steel manufacturers have already suffered due to increased raw material costs, which have risen from USD 500 to USD 700 per ton following the Russia-Ukraine war. He stated that the steel industry has experienced a 13 percent capital loss due to the war and warned that the gas tariff hike would exacerbate their financial challenges. “The BERC should review the tariff increase,” he urged.
The public hearing was also attended by BTMA President Shawkat Aziz Rassel, CNG Association General Secretary Farah Nur, Tarry Towel Association President Zakir Hossain, former CNG Association President Zakir Hossain Nayon, FERB Chairman Md. Shamim Jahangir, and FERB Executive Director Shirajul Islam, among others.
BERC Chairman Jalal Ahmed, who chaired the hearing, acknowledged that industrial units are not receiving an adequate and proper supply of gas. He attributed the ongoing gas crisis to a lack of exploration over the past 16 years. He stated that Petrobangla would drill 100 new wells to address the issue, adding that unless local production increases, LNG imports will have to rise, which will further increase prices.
BERC members who attended the hearing included Md. Abdur Razzaque (Admin, Finance & Law), Md. Mizanur Rahman (Gas), Dr. Syeda Sultana Razia (Petroleum), and Brig. Gen. (Retd.) Md. Shahid Sarwar (Power). BERC’s Petroleum Director Dr. Md. Didarul Alam and Deputy Director (Tariff) Kamruzzaman presented the tariff evaluation.
