Friday, September 30, 2022
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BERC rejects proposal to increase gas price

Gas distribution companies have proposed to increase gas prices within two months of raising fuel prices. The companies have also submitted proposals to double the price last week. However, the Bangladesh Energy Regulatory Commission (BERC) did not accept the proposal as it was not legal.

It was proposed to increase the price of gas at the consumer level in the country. According to the proposal, the monthly bill for two stoves will be Tk 2,100, which is currently Tk 975. On the other hand, the monthly bill of one stove will be two thousand rupees, which is currently 925 rupees.

In addition, in the industrial sector, the price of gas per cubic meter has been increased from Tk 10 70 paise to Tk 23 24 paise and in captive (gas used in industrial power generation) from Tk 13 75 paise to Tk 30 instead of 30 distribution companies.
Last week, Titas, Bakhrabad and Western Gas Companies submitted separate proposals to the Energy Regulatory Commission (BERC). Other organizations will submit their proposals this week. This information is known from Petrobangla sources.

Last month, the Co-ordination Council on the Currency and Currency Exchange Rate suggested raising electricity and fuel prices to cope with “subsidy pressures”. Then on January 3, the Energy Department instructed Petrobangla to send a proposal to BERC to increase the price of gas. Later, a draft of LNG and domestic gas imported from Petrobangla was sent to the distribution companies on January 5 with charges of price, VAT-tax, various funds. Distribution companies then send their proposals to the commission, suggesting a similar price increase. At the same time, the companies have proposed to increase their operating expenses (margins).

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