Gas price hike bid draws stiff resistance from stakeholders

A government's bid to increase gas prices by more than 150% from the existing price in industrial and captive power plants faced stiff resistance from entrepreneurs, business leaders, consumer rights groups and politicians today (26 February).

They called the move unjust and an attempt to destroy the country's economy.

The state-owned Bangladesh Energy Regulatory Commission (BERC) organised a mass hearing at the BIAM auditorium in the capital on the proposals of seven gas suppliers including Petrobangla which seek gas price to be determined Tk75.72 per cubic feet of gas from present tariffs of Tk30 in industry and Tk31.50 in captive power plant.

The speakers said there is no logical ground to increase gas prices in the industrial sector at a time when the country is reeling with production disruption inflicted by a short supply of gas and power and slow growth.

They urged the government to increase the efficiency of the power sector officials and to take effective measures to check system loss and pilferage which constitute around 13%.  

Addressing the hearing, Mir Nasir Uddin, former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), vehemently opposed the gas price hike proposal saying, "There should be a philosophy in every decision of the government. What is the philosophy of increasing gas prices in the industrial sector?"

He added, "If the proposed gas price is taken into account, the existing industry will pay gas prices in one metric, on the other hand, those who want to expand industry or want to set up a new industry, they have to pay another price. How the business will run in this discriminatory scenario."

Anwar-ul-Alam Chowdhury, president of the Bangladesh Chamber of Industry (BCI), said, "We have to think that some vested interest groups are working against our economy, setting up industries and factories. There is a massive waste of gas because of your inefficiencies. 

"You are transferring your inefficiencies on us so that we also become inefficient entrepreneurs and make the country bankrupt in the process."

Taking shots at gas suppliers, he said, before presenting their documents for gas price hike bid officials have to think about the nation and its people and the competency within the government.

Showkat Aziz Russell, president of Bangladesh Textile Mills Association (BTMA), urged the government to regularly explore new gas fields and drill wells.

He said, "The BTMA invested $22 billion in the textile industry but decisions that affect us heavily were taken unilaterally even without consulting us. We urge the government to cut VAT and tax on import and consumer end."

CAB stages human chain, walks out of hearing

In protest against the gas price hike move, the Consumers Association of Bangladesh (CAB) formed a human chain outside the auditorium and demanded the abandonment of the "farcical" hearing. The human chain lasted for an hour where economist MM Akash spoke against the gas price hike bid.

M Shamsul Alam, energy adviser at CAB, said, "What the BERC is doing is nothing but adhering to the demand of the government. The BERC should feel that they are independent and unwilling to bow down to pressure from the government in determining gas prices."

He added, "If the proposed gas price is passed and the government fails to understand the reasoning behind this proposal, our industrial sector will drown in the Bay of Bengal."

Politicians line up against the move 

Communist Party of Bangladesh Secretary Ruhin Hossain Prince also raised concerns about the hearing process, claiming that the people's concerns were not being adequately considered. "Did the BERC ever conduct a study on how this massive gas price hike would impact the country's business sector?" he asked.

Ganosamhati Andolon Chief Coordinator Zonayed Saki in his speech advised the government to frame a policy comprising experts, business leaders and politicians to decide on what kinds of energy security Bangladesh would like to have in the future.

He said, "If this gas price hike is meant to meet IMF conditions to have a $4.7 billion budget support credit line, let the people decide. Environment for doing business is very bad now....industry is suffering on multiple fronts."

Chaos at the hearing

The mass hearing saw an unprecedented incident in recent history as protesters started chanting slogans against the price hike move and demanding immediate abandonment of the hearing. Protests began shortly after the speech by Ruhin Hossain Prince. 

Protesters chanted, "The farcical hearing has to stop. Has to stop."

BERC Chairman Jalal Ahmed hurriedly announced a lunch break before schedule after failing to tame the protesters.