Bangladesh Energy Regulatory Commission (BERC) rejected a proposal to raise the prices of natural gas by the state-run Bangladesh Oil, Gas and Mineral Corporation, widely known as Petrobangla.
“We did not accept Petrobangla’s proposal gas price hike because they did not submit it as per the exisiting law,” said AR Khan, chairman of the energy watchdog while talking to the Dhaka Tribune yesterday.
“As Petrobangla and the other distribution and transmission companies are dealt with separately by the BERC, Petrobangla cannot submit the proposal on behalf of the other companies. All of them have to send their proposals separately,” he said.
Petrobangla sent the proposal in question to the BERC on Wednesday.
“We received suggestions regarding how to proceed from the BERC, which we will review and discuss with the Ministry of Power, Energy and Mineral Resources to take a decision,” Petrobangla Chairman Istiaque Ahmad said.
“If the ministry agrees with the suggestions, it will give directives to the gas distribution companies to submit proposals to the BERC seeking an increment of gas prices in different consumer categories,” he said.
The government plans to increase the gas prices for all types of consumers, significantly in the households, with a view to reducing wastage.
Petrobangla suggested a proportionately less increment for industrial and commercial users (around 30%) than for the households (over 122%).
M Shamsul Alam, energy adviser to Consumers Association of Bangladesh, said there was no scope for the BERC to take Petrobangla’s proposal under consideration under the current law.
“The commission [BERC] must stick to the laws, or it would be controversial,” he told the Dhaka Tribune.
He urged other distribution companies to come forward and submit their own proposals regarding price hike, adding that the group would not participate in the hearing if they did not.
At present, there are five companies that distribute natural gas through a national grid network: Titas Gas Transmission and Distribution Company Ltd, Karnaphuli Gas Distribution Company Ltd, Jalalabad Gas Transmission and Distribution System Ltd, Pashchimanchal Gas Company Ltd, and Bakhrabad Gas Distribution Company Ltd.
The last hike of gas prices happened in November 2008. After the Awami League-led government came to power in 2009, it only increased the price of converted natural gas (CNG) several times.