• Friday, Nov 27, 2020
  • Last Update : 02:16 pm

Titas proposes gas tariff hike up to 80% for household, 211% for business

  • Published at 09:13 pm March 12th, 2019
gas stove.jpg
File photo of a gas stove Collected

Tk1,350 for single burner, Tk1,440 for double burner ovens proposed

Titas Gas Transmission and Distribution Company Ltd on Tuesday proposed raising gas tariffs for household users by 80% while up to 211% for consumers of different sectors including power, industry, and motor vehicles.

As per the proposal, if it is approved by the energy regulator, the household consumers using one burner will have to pay Tk1,350 per month instead of exiting rate of Tk750 while the two-burner users will pay Tk1,440 per month instead of Tk800 and the metered household consumer has to pay Tk16.41 per cubic metre (each unit) instead of Tk9.10 per cubic metre for gas consumption.

Placing the proposal at the public hearing at TCB auditorium in the city, Titas Gas Managing Director Mostafa Kamal said they have to move the proposal to offset the loss which it will be incurred due to distribution of imported LNG to its consumers.

Also Read - Consumer groups reject gas price hike proposal at public hearing

Bangladesh Energy Regulatory Commission (BERC) organized the four-day hearing, responding to appeals of different gas distribution entities for raising gas tariff on account of import of LNG to meet the growing demand.

BERC Chairman Monwar Islam presided over the hearing while other members of the commission were present.

On completion of the hearing, the BERC will make the final decision on the proposals within 90 days.

As per the Titas latest proposal, the power plants will pay Tk9.74 per unit of gas instead of the existing rate of Tk3.16 with a rise of 208% while fertilizer factories will pay Tk8.44 per unit instead of Tk2.71 per with the rise of 211%.

Titas Gas proposed to increase gas tariffs by 96% to Tk18.88 per unit from Tk9.62 for captive power while it is proposed to hike 132% gas tariff for industries to Tk18.04 per unit against the existing rate of Tk7.76 per unit.

Titas proposed to raise tariff by 50% for CNG to Tk48 per unit from Tk32 while it proposed to raise 41% tariff for commercial use of gas to Tk24.05 from Tk17.04 per unit.

Also Read - Anger as govt moves for fresh gas tariff hikes

In the second session of the day, Sundarban Gas Company Limited placed the identical proposals in the hearing.

Earlier, Titas and other companies sent proposals to the regulator on the basis of the government's old plan of import of 700 mmcfd LNG where it proposed Tk1,000 for single burner oven and Tk1,200 for double burner oven and also some rise in tariff for other consumers.

How the consumer rights groups, businesses react

Representatives from different consumer groups, including individuals, business bodies and chambers, who took part in the hearing strongly opposed the Titas proposals saying that any raise in gas tariff will be detrimental to the country's economy as they will have the count an extra cost which will make them non-competitive in the global market.

"We cannot afford any rise in the gas tariff as we're already facing challenges due to increase in our production cost," said Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Shafiul Islam Mohiuddin.

Adviser to Consumers Association of Bangladesh Prof Shamsul Alam said the government is asking for extra price for 1,000 LNG import. But the government is fully aware that it will not be possible to import this gas by April this year.

Bangladesh Textile Mills Association President Mohammad Ali Khokon said many textile mills will face closure if the gas tariff is increased when the production cost is rising for various reasons.

BGMEA President Siddiqur Rahman said if the industry faces closure for increased gas price, it will have multiple impacts on the economy.

The BERC will hold hearing on the proposals of Bakhrabad Gas Company and Jalalabad Gas Company on Wednesday.

Highlights of proposal made by Titas and Sundarban Gas companies

- Tk1,350 for single burner/month [current rate is Tk750/month]

- Tk1,440 for double burner/month [current rate is Tk800/month]

- Tk16.41 per cubic metre (each unit) for metered household consumers [current rate is Tk9.10 per cubic metre (each unit)]

- Tk18.04 per unit for industries [current rate is Tk7.76 per unit]

- Tk24.05 for commercial use of gas [current rate is Tk17.04 per unit]

- Tk9.74 per unit for power plants [current rate is Tk3.16 per unit]

- Tk18.88 per unit captive power plants [current rate is Tk2.71 per unit]

- Tk8.44 per unit fertilizer factories [current rate is Tk2.71 per unit]

- Tk48 per unit for CNG [current rate is Tk32 per unit]

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