18% gas price hike likely; order on Sunday

Consumers, who are already squeezed by skyrocketing prices of commodities, are now going to face another blow as gas prices are likely to go up by up to 18% on an average, according to sources in the know about the development.

At present, the average weighted price of gas per cubic metre is Tk9.80, which may increase to Tk11.56 per cubic metre. 

Non-metered double burner domestic gas users will see the cost jump to Tk1080 from the current Tk975 a month. 

Bangladesh Energy Regulatory Commission (BERC) is going to announce the tariff order on Sunday, according to a notice issued on Saturday. 

In the last 13 years, gas prices have increased by 129.49%. The last time the BERC hiked the average gas price by 33% to Tk9.80 per cubic metre was in June 2019.

In January this year, Petrobangla proposed that the BERC increase the average gas price up to Tk15.30 cubic metre, while six gas distribution companies demanded an increase in the gas price up to 117% to Tk20.36 per cubic metre. 

In the proposal, Petrobangla said the gas price needs to be increased as it has to import LNG at high prices from the spot market amid the volatile international market. 

At present, only 3-4% of the total 3,000 million cubic feet of daily gas supply comes from the spot LNG. 

In March, BERC held a four-day long hearing on the gas price hike proposal. 

At the hearing, Professor Dr Shamsul Alam, senior vice-chairman of Consumer Association of Bangladesh, said this is not justified to increase the total gas price for the 3% of the spot LNG. 

"Besides, the distribution companies are all in profit and they have failed to justify price increases. Instead, we have shown that the gas price can be reduced by Tk0.16 per cubic metre," he said at the hearing.

"At present, people do not have the ability to pay the extra cost amid rising inflation," he added.