Gas price up by 22.78pc from Monday

The average gas price has been raised by 22.78 per cent for the retail consumers in the country with effect from Monday, reports UNB.

Acting chairman of the Bangladesh Energy Regulatory Commission (BERC) Mohammad Abu Faruque announced the hike through a virtual briefing on Sunday.

As per the announcement, the average gas price has been raised to Tk 11.91 per cubic metre from the existing Tk 9.70 per cubic metre (CM).

Except the users of CNG (compressed natural gas), all other consumers will have to pay more for the natural gas. The price for small industries has, however, been decreased a little.

As per the new rate, the household consumers having single burner will have to pay Tk 990 (7.03 per cent rise) instead of exiting Tk 925 a month while the double burner users will have to pay Tk 1080 (10.77 per cent rise) instead of existing Tk 975.

The highest increase was made in the household consumers as they have to pay Tk 18 per Cubic metre (42.86 per cent rise) instead of existing Tk 12.60 per cubic metre (CM).

According to the increased price, CNG consumers will have to pay at the existing rate of Tk 43 per CM while captive plant operators will have to pay Tk 16 per CM (15.52 per cent rise) instead of Tk 13.85.

Commercial consumers like restaurants, hospitals, student hostels, hotels will have to pay Tk 28.64 (15.83 per cent rise) instead of Tk 23 per CM.

The large industries industry owners will have to pay Tk 11.98 (11.96 per cent rise) instead of Tk 10.70 per CM while medium industry Tk 11.78 per CM (10.09 per cent rise) and small and cottage industry Tk 10.78 (36.74 per cent decrease) and the tea estates at Tk 11.93 per CM (11.50 per cent rise).

Public and private power plants will have to pay Tk 5.02 per CM instead of Tk 4.45 per CM (12.81 per cent rise) while fertiliser factories Tk 16 (59.55 per cent rise) from existing Tk 4.45 per CM.

Energy sector experts believe that the increase in gas price for power plants means it will have a spillover effect and the power plant operators will soon raise demand for increase in power tariff.

The BERC acting chairman said this new price was calculated considering the import of 645 million cubic feet (MMCFD) of LNG for the new fiscal year of 2021-22.

He said the gas price was last increased in June 2019.

The new price hike came in response to the demands of different gas utility companies.

The BERC held a series of public hearings on 21-24 March this year.