Business leaders oppose gas price hike move
They wrote a letter to BERC, call for weighted average rate price
The country's business leaders have strongly opposed the proposed gas price hike for industrial and captive power users, stating such a move would severely impact the development and stability.
It will also impact industrial development, FDI, local investment and as well as employment creation, they argued.
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Fourteen leading business leaders issued a joint letter to the Bangladesh Energy Regulatory Commission (BERC) to this end today (9 March) following the public hearing held on 26 February.
They are Bangladesh Chamber of Industries President Anwar-Ul-Alam Chowdhury Parvez, Bangladesh Textile Mills Association President Showkat Aziz Russell, Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem, Metropolitan Chamber of Commerce and Industry President Kamran T Rahman, Bangladesh Garments Accessories & Packaging Manufacturers and Exporters Association President Md Shahriar, Leathergoods and Footwear Manufacturers & Exporters Association President Syed Nasim Manzur, Bangladesh Plastic Goods Manufacturers and Exporters Association President Shamim Ahmed, Bangladesh Ceramic Manufacturers and Exporters Association President Moynul Islam and Dhaka Chamber of Commerce & Industry President Taskeen Ahmed.
Bangladesh Garment Manufacturers and Exporters Association Administrator Md Anowar Hossain, Meghna Group Chairman and Managing Director Mostafa Kamal, Uttara Motor Corporation Chairman Matiur Rahman and FBCCI's former president Mir Nasir Hossain also signed the letter.
The letter states that the new gas connection will face 2.5 times higher cost than the old connection holders, which is contradictory to the constitution, law and justice.
The business leaders said the government should reduce the gas price to a maximum of Tk24.39 per cubic metre, based on the blended cost of imported LNG and local natural gas.
Talking with The Business Standard BTMA President Showkat Aziz Russell urged the government to relocate gas from fertiliser production to industrial use, as the cost of domestically produced fertiliser exceeds import prices, making imports a more viable option.
He said the textile industry is wrestling with multiple economic pressures following the Covid-19 and Russia-Ukraine war.
Russell highlighted the industry's crisis amid gas price hike, fluctuating exchange rates, an increase in bank interest rates and a reduction of incentives for exports.
"Moreover, the influx of yarn and fabric from India at dumping prices through various land ports and customs houses has further intensified competition, adding to the woes of domestic textile manufacturers," he added.
In a separate letter, the BTMA president also said that over the past five years, the prices of gas, electricity and diesel were hiked by 286.5%, 33.5%, and 68%, respectively.
The organisation said that further gas price hikes will add to the financial burden, crippling the industry and undermining Bangladesh's export competitiveness.
If this situation persists, the country's textile sector will gradually lose its competitive edge in exports and become increasingly dependent on imported fabrics, the letter read.
The BTMA demanded the withdrawal of the proposed gas price hike and setting a weighted average price of Tk20 per cubic meter for industrial and captive power users.
It also urged the government to consider these recommendations to safeguard the country's textile industry, maintain export competitiveness, and ensure sustainable economic growth.
Bangladesh Garments Accessories & Packaging Manufacturers and Exporters Association President Md Shahriar said, "The government should ensure an adequate gas supply to industries, especially for SMEs, at a low cost.
"If needed, the government should consider stopping household and fertiliser industry gas connections after evaluating their economic value."
