Resentment over gas tariff hike

Gas price hike for the seventh time over the last 10 years has triggered resentment among people of almost all sections in the country.
Following the fresh chart announcement by the Bangladesh energy Regulatory Commission (BERC) on Sunday, consumers will have to bear the burden of the gas price hike in every sector as the prices of goods, power and public transport fare will increase, experts forecast.
Power price will go up with the price hike in gas, said Energy Adviser to Consumers Association of Bangladesh (CAB) Prof DR M Shamsul Alam.
Currently, the power sector is using around 40 per cent of the total supply of gas (3.2 billion cft) in the country every day. The Bangladesh Power Development Board (BPDB) too will decide to raise power prices. This too will affect the industrial sector.
"Businessmen will increase the price of goods, the government will increase the power price and the transport owners will raise fares to meet the added cost and they will never follow any guideline or rule. As a result the poor and mostly common people of the country will be the worst sufferer of the fresh price hike although they were not covered by the energy security surveillance of the government," Dr Shamsul Alam said.
He said only 40 per cent people are enjoying household gas service. The rural people are not getting LP gas at rational price. The LNG import will push them to shack the burden of the gas price hike.
The government is buying per cubic meter of LNG at Tk 32 and selling it at Tk 7.17.
During the public hearing, BERC Chairman Monowar Hossain said the National Board of Revenue (NBR's) decided to withdraw all import, supplementary and customs duties and advance trade VAT (ATV) on LNG.
The NBR's move implies that 5 per cent customs duty and 5 per cent advance trade VAT alongside a 93.24 per cent SD on LNG is no longer applicable.
The gas price hike would affect the price of edible oil and sugar too. Overall, it would affect livelihood, which will increase the inflation rate.
"The gas price hike will affect the prices of power, production of goods and other sectors. The businessmen will increase the price of goods and services. As a result people will have to pay more prices for everything," he said.
 "Increased gas prices will hit the export-oriented industry sector hard as it might face stiff competition in the international market due to higher production costs.
Bangladesh Textile Mills Association (BTMA) said not a single local yarn factory will be able to face the challenge if the gas price is increased as per the proposed rate, he asked.
Bangladesh Auto Re-rolling and Steel Mills Association former president Sheikh Masadul Alam said, "The consumers might face added pressure in the future as the gas price will increase and dollar price is on the rise. The pressure of tax will be added to that if the new VAT law is implemented."
Bangladesh CNG Filling Station and Conversion Workshop Owners Association in a press release condemned the government move to hike gas price.
Socialist Party of Bangladesh (SPB) too in a press release rejected the move by the BERC and demanded cancellation of the fresh tariff hike by the commission.
"During the public hearing, the distribution companies failed to justify the price hike proposal, so there is no justification of the price hike," the SPB said.
Protesting the BERC's move, the SPB will organize a rally and agitation programme today at the National Press Club at 3 pm.