POST TIME: 15 March, 2019 01:00:42 AM
Distributors stick to 103pc gas price hike proposal

Distributors stick
to 103pc gas price hike proposal

In line with the other distribution companies, Karnaphuli Gas Distribution Company Limited (KGDCL) yesterday placed a proposal to raise the gas tariffs by an average of about 103 per cent. At the last day of the four-day-long hearing, the Chattagram-based distributor placed its proposal to the Bangladesh Energy Regulatory Commission (BERC).

BERC Chairman Monwar Islam presided over the public hearing at TCB Auditorium in the capital, where other members of the regulatory body were also present. In the 102.85 per cent average hike, the KGDCL proposed to raise the prices of household gas for single burner ovens from Tk 750 to Tk 1,350 and double burner ovens from Tk 800 to Tk 1,440.

The KGDCL sought 208 per cent hike in prices for power plants as it proposed Tk 9.74 per cubic meter (CM) for power plants in place of the exiting price of Tk 3.16.

The gas prices for fertiliser factories were proposed to be hiked the highest, 211 per cent, where the prices were sought to be Tk 8.44 per CM against the existing rate of Tk 2.71 per CM. The captive power plants' gas prices were proposed to be Tk 18.88 per CM against Tk 9.62 while industries’ gas prices were proposed at Tk 18.04 per CM against the existing Tk 7.76  

per CM and CNG gas prices were proposed to be Tk 48.10 per CM against existing rate of Tk 32.

Speaking on the occasion, Harun Ur Rashid, Petrobangla Director of Finance, said 500mmcf LNG imports incurred around Tk 9,900 crore in subsidy in the last nine months.

“We all want continuous and uninterrupted gas supply and for that there is no option now but to import gas. To reduce the amount that we are losing in subsidy has to be counterbalanced by the price increase of gas,” said Rashid.

BERC Chairman Monowar Islam said they have received all the proposals from the distribution companies and have heard the arguments and counter-arguments surrounding the gas price hike proposals.

“We will give our decision as per the law within the next three months,” he said.