Titas Gas company has submitted a proposal to the Bangladesh Energy Regulatory Commission (BERC) to raise the price of gas even though it profited Tk310.73 crore during FY2013-14, continuing its profitability of several years.
The BERC said it would hold a public hearing in the first week of February before making a decision.
During FY2013-14, a total of 14,732.08 mmcfd of gas was sold and a sales revenue of Tk7,773.28 crore was earned. Compared to the previous year’s revenue of Tk7,462.55 crore, the growth rate in revenue income for the year under review was 4.16%, according to figures published yesterday at the company’s 33rd Annual General Meeting at a club in the capital.
The company’s net pre-tax profit and net after-tax profit were Tk1,379.84 crore and Tk1,026.89 crore, respectively, during FY2013-14.
An official of Titas Gas said, on average, the company was making a profit of over Tk300cr over the last few years.
“As per Petrobangla’s order, we recently sent a proposal to BERC asking for a price hike,” Titas Gas Transmission and Distribution Company Limited acting managing director Md Nowshad Islam said. Asked why the decision had been made to seek a price hike, he said: “It is Petrobangla’s decision. We have nothing to say here.”
BERC chairman AR khan told the Dhaka Tribune yesterday: “We hope they will hold a public hearing in the first week of February. But we are not sure when the decision will be finally taken in this regard.”
According to the Titas Gas proposal, domestic users will have to pay Tk1,000 instead of Tk450 for each double burner – a hike of 122.22%. For single burners, a new rate has been proposed of Tk850, up from Tk400 a month. This is 112.5% higher than the previous price.
Consumers using meter-based burners will have to pay Tk235 instead of Tk146.25 per month – a 60.68% increase. The second highest price hike of 102.94% has been proposed for captive powers (privately-owned smaller power plants) – Tk240 from Tk118 for 1,000 cubic feet of gas.
“We know Titas gas has been making a profit every year. What is the reason behind hiking the existing price of gas?” Prof Samsul Alam, adviser of the Consumers Association of Bangladesh, said.
“The government should focus on curbing the wastage of gas instead of increasing its price,” he said.