'Completely contradictory to govt's policy of attracting investors': Gas price hike sparks outcry from business leaders

Business leaders have expressed strong disapproval of the government's decision to hike gas prices by 33% for new consumers and existing consumers in captive power plants and industries, citing concerns over its impact on investment and competition.

Speaking with The Business Standard, Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) President Md Shahriar said the hike in gas prices would create discrimination between old and new investors.

"This is completely contradictory to the government's policy of attracting new investors," he added.

"At the last investment summit, the government invited investors to invest in Bangladesh — so how can they now increase gas prices?" he questioned, referring to the latest Bangladesh Investment Summit.

Shahriar said, "Many investors, including myself, had planned to make new investments, but now they have to reconsider due to the price hike, as they will face uneven competition with existing investors."

Meanwhile, Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), stated that Bangladesh has sufficient gas reserves, but the authorities have never taken the initiative to drill new wells.

"Instead, they have become reliant on importing LNG, which has essentially enriched an oligarchic clique — a path the previous government pursued," he told TBS.

He also said unfortunately, the current government appears to be following the same course. "Now, it must decide: will it allow the country's industries to collapse, or will it take steps to support and advance them?"

He noted that the previous government created a high dependency on India for many sectors, including energy. "We wanted to overcome that dependency, as India does not believe in win-win bilateral or diplomatic relationships."

Opposing the gas price hike, he said the increase is unacceptable under any circumstances. "On the contrary, the price should be brought down to around Tk20 now."

"BPC, Titas, and similar agencies are operating with a profit-first mindset, but their activities are benefiting neither consumers nor industries," he added.

Regarding the recently held investment summit, he said energy assurance is the foundation for attracting foreign investment.

"But how can we expect investors to come when we are raising gas prices yet again?" he questioned, warning that such hikes would discourage new investments and hinder employment generation.

"If the government could recover laundered money, it could easily address the ongoing energy crisis," he added.

Earlier today, in a notice published on their website, the Bangladesh Energy Regulatory Commission (BERC) announced that gas prices have been hiked by 33% for new consumers and existing consumers in captive power plants and industries.

It said the new prices will come into effect today.

However, the gas tariff for all other consumer categories, including households, will remain unchanged.