Balanced gas price will be ensured: BERC
“We will take the decision taking into account all considerations,” said BERC Chairman
Bangladesh Energy Regulatory Commission (BERC) today (6 October) said it would ensure a balanced gas price as it launched a stakeholders' hearing on the pricing issue.
"We will take the decision taking into account all considerations," BERC Chairman Jalal Ahmed said as the hearing began on re-fixing the natural gas price in the fertiliser category, natural gas being its main ingredient, at Bangladesh Institute of Administration and Management (BIAM) in the city's New Eskaton.
He said the agriculture sector must be taken into account particularly in ensuring food security while the commission would consider the Liquefied Natural Gas (LNG) import cost as well.
Keep updated, follow The Business Standard's Google news channel
The state-run Petrobangla, a major stakeholder that mainly imports LNG, seeks to increase price to reduce subsidies and enhance import volume while another key stakeholder Bangladesh Chemical Industries Corporation (BCIC) intends the price to be kept low to halt fertiliser price hike.
The Petrobangla proposal before the commission stated that if the price was increased, they could import an additional seven LNG-filled cargoes for fertiliser production.
Petrobangla is currently supplying 165 million cubic feet per day (mmcfd) of natural gas to fertiliser factories—up from 130 mmcfd last month, according to Petrobangla Director (Operations) Engineer Rafiqul Islam.
BCIC, on the other hand, said if the gas price is Tk30 per unit then urea fertiliser production could be 20 lakh tonnes annually and per kg of fertiliser production cost will be Tk46 but import cost will be Tk61.
Another stakeholder, the Agriculture Ministry, said they have no proposal on the issue but the ministry did not want any pressure to mount on farmers.
The ministry's representative Deputy Secretary Moniruzzman, however, said if the production cost of fertiliser increases, the opinion of the Finance Ministry should be taken to settle the possible question on subsidies for farmers.
Petrobangla and various distribution companies presented their proposals. Petrobangla Director (Finance) Mizanur Rahman, Director (Operations) Engineer Rafiqul Islam, General Manager Meherul Islam, Titas Gas Managing Director Shahnewaz Parvez, Karnaphuli Gas Distribution Company Managing Director Engineer Salahuddin, Bakhrabad Gas Distribution Company Managing Director Engineer Fazle Alam, CNG Filling Station Owners Association leader Rezabuddaulah, Journalist Lutfor Rahman Kakon, among others, participated in the discussion and question-and-answer sessions.
