Commercial gas price might rise by 70%, household gas could cost double

After the much-criticized two-step hikes in the price of gas last year, authorities have proposed yet another increase which could see the price of gas for commercial prices rise by 70%. On Tuesday, Bakhrabad Gas Distribution Company (BGDC) proposed the Bangladesh Energy Regulatory Commission (BERC) to hike commercial prices by 70%. A formal proposal was submitted on Wednesday. An officer with Titas Gas Distribution Company confided that the increase will affect everything except residential gas prices. The officer however noted that residential users will find no respite, as there are overtures to double the cost of household gas once imports of LNG (liquefied natural gas) increase. Last year, authorities attempted two increase household gas prices within a year. Gas distributors proposed gas for double burner stoves to cost Tk1,000 instead of Tk600. The second price hike was declared illegal by the High Court and it was capped at Tk800.The latest proposal looks to hike the gas cost for electricity, fertilizers, industries, and captive power. CNG costs will go up by 20%. Titas Managing Director Mir Moshiur Rahman said the price increase is to coordinate with the price hike after LNG imports commence. BERC Member Abdul Aziz Khan said a committee will be formed to assess proposals from all the companies before making any decisions. Starting April, LNG imports will be part of the national grid. Since it will cost more than domestic gas, the Energy and Mineral Resources Division took the initiative to off-set the cost by raising consumer prices. Last November, Mizanur Rahman, another BERC member, had said the average electricity production cost would not be affected if it received 500 million cubic metres of LNG. But the latest proposal, which looks to double gas prices for electricity, does not bode well for commercial or household users.This article was first published on banglatribune.com