Gas prices to increase by 32.8pc from today

Single burner-Tk 925, double burner’s- Tk 975

The Bangladesh Energy Regulatory Commission (BERC) has decided to increase gas price by 32.8 percent on an average from July 1 for all users. BERC Chairman Monowar Islam informed the decision while addressing a press conference at Karwan Bazar area in Dhaka on Sunday afternoon. He said the average price of gas will increase by 32.8 percent to Tk 9.80 per cubic metre from Tk 7.38 per cubic metre. As per the announcement, the gas price for the single burner will increase to Tk 925 per month from Tk 750 and the double burner’s price will be Tk 975 from Tk 800. However, the consumers, who are paying bill as per meter reading, have to pay Tk 12.60 for per unit which was Tk 9.10.

The price of compressed natural gas, or CNG, used to fuel vehicles will also rise from Monday to Tk 43 per cubic metre from Tk 38 per cubic metre.As per new chart the gas price will stand at TK 4.45 with 41 percent for power plant, TK 13.85 (44%) for captive power plant, TK 4.45 (65%) for fertilizer factories, TK 10.70 for industries (38%) and tea estates (44%), TK 23 (35%) for hotel and restaurant and per unit gas price for small and cottage industries will TK 17.04.

Among others Commission member Rahman Murshed and Mizanur Rahman were also attend the press conference.Mizanur Rahman said around TK 18730 crore will be needed for imported LNG. Of these government will give TK 7690 crore as a subsidy and TK 2,420 crore will come from energy security fund of BERC. Rest of amount TK 8620 crore will come from gas users after increases of new gas price.

BERC said multiple factors have prompted the BERC to backtrack from its earlier decision of not increasing the price. This includes injection of costly LNG into the national pipeline, because of which the country is losing Tk. 7,000-8,000 crore yearly.Bangladesh entered the LNG era in August last year after the LNG brought from Qatar was supplied into the national grid. This was done after regasification was carried out in the country’s first floating storage and regasification unit (FSRU) docked at Moheshkhali.

The government is buying LNG at Tk. 35 per unit and selling it for Tk 7.17. Altogether, two FSRUs—one of Excelerate Energy and another of Summit—are currently supplying 500 mmcfd of regasified LNG to the network.The BERC started the recent round of public hearing on March 11 on the proposals placed by six gas distribution companies—Titas, Bakhrabad, Jalalabad, Pashchimanchal, Karnaphuli, and Sundarban—for the gas price hike at the consumer level.