'Discriminatory' gas price hike will disrupt foreign investment flow, Bida tells BERC | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
June 13, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, JUNE 13, 2025
'Discriminatory' gas price hike will disrupt foreign investment flow, Bida tells BERC

Energy

Ahsan Habib Tuhin
16 April, 2025, 02:50 pm
Last modified: 16 April, 2025, 04:50 pm

Related News

  • Jet fuel price down by Tk17.43 per litre
  • Bida holds discussion with political parties on sustainable investment environment
  • BERC slashes 12kg LPG cylinder price by Tk19 at Tk1,431 for May 
  • Bida set to launch unified portal to streamline trade and investment
  • Bida, police meeting: Foreign investors assured of full safety, dedicated contact lines

'Discriminatory' gas price hike will disrupt foreign investment flow, Bida tells BERC

In a letter sent on 15 April, Bida urged the BERC to revise the gas pricing and adopt an investor-friendly tariff structure

Ahsan Habib Tuhin
16 April, 2025, 02:50 pm
Last modified: 16 April, 2025, 04:50 pm
A gas field in Bhola. File Photo: Collected
A gas field in Bhola. File Photo: Collected

The newly introduced "discriminatory" gas price hike will disrupt the flow of foreign investment as it will create a negative perception among investors who showed interest in Bangladesh after attending the recently held investment summit, said the Bangladesh Investment Development Authority (Bida).

In a letter sent on 15 April, it urged the Bangladesh Energy Regulatory Commission (BERC) to revise the gas pricing and adopt an investor-friendly tariff structure, warning that failure to do so would discourage new investments and hinder the development of a competitive market environment in the country.

In the letter, Bida Executive Chairman Chowdhury Ashik Mahmud Bin Harun requested the active cooperation of BERC Chairman Jalal Ahmed to take prompt action on the matter.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Speaking to The Business Standard, the BERC Chairman said, "I have been informed that the Bida Chairman has sent a letter regarding the revision of the gas price hike, although I have not yet received it officially."

He added, "As per the existing legal framework, there is no direct scope to revise the newly set gas prices. However, given Bida's concerns, we will bring the issue to the commission's meeting for discussion. We will also seek feedback from stakeholders and consider their opinions before deciding on the next steps."

On 13 April, the BERC announced a 33% increase in gas prices for new consumers and existing users expanding beyond 50% of their sanctioned load. The new tariff raises the rate from Tk30 to Tk40 per cubic metre for both industrial use and captive power generation.

The announcement faces oppositions from the country's business leaders who say the move could derail the government's broader economic goals at a time when Bangladesh is striving to attract foreign investment and revive industrial growth.

Referring to the recently held Bangladesh Investment Summit 2025, the Bida Chairman highlighted in the letter that over 450 investors and business leaders from 40 countries attended the event organised by Bida. Many expressed strong interest in Bangladesh's investment potential, with several signing MoUs and agreements pledging significant investments.

"A sudden announcement of discriminatory gas price hikes right after such a successful summit is likely to create a negative perception among prospective investors," the letter reads.

The letter said while Bida does not oppose the government's broader plan to reduce subsidies, the chairman recommended a more inclusive and non-discriminatory approach to subsidy rationalisation.

Following the gas price hike, the Foreign Investors' Chamber of Commerce and Industry (FICCI) and the European Union Chamber of Commerce in Bangladesh (EuroCham) also expressed concerns over the BERC's gas tariff structure, which differentiates between new, committed, and existing customers within the same industrial category.

In a statement issued on Tuesday (15 April), the FICCI said the newly announced tariff mechanism risks creating unintended barriers for new and expanding industries.

The FICCI said this differentiated pricing model presents several challenges. It introduces inequity in energy costs across similar operations, undermines the principle of a level playing field, and could adversely affect Bangladesh's industrial competitiveness at a time when investment momentum is building, said the trade organisation.

In a separate statement, the EuroCham warned that the differential tariff mechanism – based on industrial consumers' contractual timelines and gas connection status – could inadvertently hurt investor sentiment and industrial growth.

In a move to protect investment momentum and stimulate economic activity, the Bangladesh Investment Development Authority (Bida) has formally urged the Bangladesh Energy Regulatory Commission (BERC) to revise the recently introduced "discriminatory" gas pricing and establish an investor-friendly tariff structure.

In a letter sent on 15 April, Bida Executive Chairman Chowdhury Ashik Mahmud Bin Harun requested the active cooperation of BERC Chairman Jalal Ahmed to take prompt action on the matter.

Speaking to The Business Standard, the BERC chairman said, "I have been informed that the Bida chairman has sent a letter regarding the revision of the gas price hike, although I have not yet received it officially."

He added, "As per the existing legal framework, there is no direct scope to revise the newly set gas prices. However, given Bida's concerns, we will bring the issue to the commission's meeting for discussion. We will also seek feedback from stakeholders and consider their opinions before deciding on the next steps."

In the letter, the Bida chairman noted that the Energy Commission, on 13 April, announced new gas tariffs that require new industrial investors to pay up to 33% more for gas than existing consumers. He emphasised that such "discriminatory" pricing could discourage both new investments and fair competition in the market.

He said, "Investors already view this policy as anti-competitive and are voicing their opposition. We believe this decision may adversely affect the flow of foreign direct investment into the country."

While Bida does not oppose the government's broader plan to reduce subsidies, the chairman recommended a more inclusive and non-discriminatory approach to subsidy rationalisation.

Referring to the recently held Bangladesh Investment Summit 2025, the Bida chairman highlighted that over 450 investors and business leaders from 40 countries attended the event organised by Bida. Many expressed strong interest in Bangladesh's investment potential, with several signing MoUs and agreements pledging significant investments.

He added, "A sudden announcement of discriminatory gas price hikes right after such a successful summit is likely to create a negative perception among prospective investors."

On 13 April, the BERC announced a 33% increase in gas prices for new consumers and existing users expanding beyond 50% of their sanctioned load. The new tariff – effective from 13 April – raises the rate from Tk30 to Tk40 per cubic metre for both industrial use and captive power generation.

With this adjustment, new industrial consumers and those scaling up production will now have to pay Tk10 more per unit of gas, adding fresh cost pressures amid a volatile macroeconomic environment marked by high inflation, weak credit growth, and declining investment.

Following the gas price hike, the Foreign Investors' Chamber of Commerce and Industry (FICCI) and the European Union Chamber of Commerce in Bangladesh (EuroCham) expressed concerns over the BERC's gas tariff structure, which differentiates between new, committed, and existing customers within the same industrial category.

In a statement issued on Tuesday (15 April), the FICCI said the newly announced tariff mechanism risks creating unintended barriers for new and expanding industries.

The FICCI said this differentiated pricing model presents several challenges. It introduces inequity in energy costs across similar operations, undermines the principle of a level playing field, and could adversely affect Bangladesh's industrial competitiveness at a time when investment momentum is building, said the trade organisation.

In a separate statement, the EuroCham warned that the differential tariff mechanism – based on industrial consumers' contractual timelines and gas connection status – could inadvertently hurt investor sentiment and industrial growth.

Economy / Top News

Bida / BERC / Gas supply

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Taskeen Ahmed, DCCI president. Illustration: TBS
    'Will boost business confidence': DCCI welcomes agreement between Yunus-Tarique on election
  • Sketches: TBS
    How an escalating Iran-Israel conflict could impact Bangladesh
  • News of The Day, 13 JUNE 2025
    News of The Day, 13 JUNE 2025

MOST VIEWED

  • Wreckage of a Boeing 787 Dreamliner showing part of its registration "VT-ANB" in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
    Air India Dreamliner crashes into Ahmedabad college hostel, kills over 290
  • File Photo of Chief Adviser Muhammad Yunus: UNB
    Prof Yunus to receive Harmony Award from King Charles today
  • Energy adviser Fouzul Kabir Khan with other government officials during a visit to Sylhet gas field on 13 June 2025. Photo: TBS
    I would disconnect gas supply to every home in Dhaka if I could: Energy adviser
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Bangladesh mulls settlements with tycoons over offshore wealth: BB governor tells FT
  • UCB declares no dividend for 2024 to comply with regulatory requirement
    UCB declares no dividend for 2024 to comply with regulatory requirement
  • UK Prime Minister Keir Starmer, Chief Adviser Muhammad Yunus
    Disclosure of unconfirmed Yunus-Starmer meeting shows ‘diplomatic imprudence’: Analysts

Related News

  • Jet fuel price down by Tk17.43 per litre
  • Bida holds discussion with political parties on sustainable investment environment
  • BERC slashes 12kg LPG cylinder price by Tk19 at Tk1,431 for May 
  • Bida set to launch unified portal to streamline trade and investment
  • Bida, police meeting: Foreign investors assured of full safety, dedicated contact lines

Features

Photos: Collected

Kurtis that make a great office wear

4h | Mode
Among pet birds in the country, lovebirds are the most common, and they are also the most numerous in the haat. Photo: Junayet Rashel

Where feathers meet fortune: How a small pigeon stall became Dhaka’s premiere bird market

2d | Panorama
Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

3d | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

4d | Features

More Videos from TBS

Iran-Israel military power; who is ahead?

Iran-Israel military power; who is ahead?

45m | TBS World
Did the possibility of an Iran nuclear deal set back after the attack?

Did the possibility of an Iran nuclear deal set back after the attack?

2h | TBS World
IRGC chief Major General Hossein Salami killed in Israeli strike

IRGC chief Major General Hossein Salami killed in Israeli strike

3h | TBS World
'Historic' meeting between Yunus and Tarique underway in London

'Historic' meeting between Yunus and Tarique underway in London

6h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net