4-day BERC public hearing on gas price fixation from Mar 21

Bangladesh Energy Regulatory Commission (BERC) will start a 4-day public hearing from March 21 on the proposals submitted by the gas distributing agencies for fixing a new gas tariff at the retail and bulk levels.
Petrobangla, the state-owned Oil and Gas Corporation and Gas Transmission Company Ltd (GTCL), the sole bulk gas transmission authority also wants to increase transmission charges along with the other six gas distributors. They have already filed separate applications seeking steps to trim losses and operation costs of their respective companies.
According to their proposal, they want to raise household gas price from the existing Tk 975 to Tk 2,100 for double burners and from the existing Tk 925 to Tk 2,000 for a single burner, while the price of each cubic meter of gas from the existing Tk 12.60 to Tk 27.37 for the burners having pre-paid meters.
Titas Gas Transmission and Distribution Company Ltd, Pashchimanchal Gas
    Company Ltd, Bakhrabad Gas Transmission and Distribution System Ltd submitted separate proposals to the BERC seeking increase in gas price. Although the proposals were different, the companies proposed to increase the gas price at a uniform rate.
In January 15 several distribution companies proposed to BERC to raise gas price as much as 117 per cent following the government directive to cope with subsidies. Separately, their principal gas supplier Petrobangla also placed proposal to raise the price of the natural gas at the bulk level.
Besides, the tariff for CNG used in transports was proposed to be rised from Tk 35 to Tk 76.04 and from Tk 23 to Tk 49.97 per cubic meter for hotels and restaurants. The price of gas used for generation of electricity and production of fertiliser has been proposed to be raised from the existing Tk 4.45 to Tk 9.66 for per cubic meter, from the existing Tk 10.70 to Tk 23.24 for per cubic meter of gas used in industrial sector, from the existing Tk 13.85 to Tk 30 for per cubic meter of gas used in captive power generation in industries and factories, from the existing Tk 35 to Tk 76.48 for each cubic meter of gas used in transports.
The gas prices for small and cottage industries have been proposed to be raised from Tk 17.04 to Tk 37.02, and from Tk 10.7 to Tk 23.24 for tea gardens, officials said.
"Obviously, it would increase the cost of electricity generation, however, we had already received power tariff proposal...yes, we will also conduct hearing on power tariff issues following the gas price rationalized," official said.
People have become very worried at the fresh proposals of gas price hike following widespread protests over transport fare increase issue in the wake of diesel price hike by Tk 15 per liter in November last year.
Currently, the Petrobangla supplies 2,700 to 3,000 million cubic feet (mmcfd) gas per day of which 2,300 mmcfd is produced locally while 600 mmcfd is imported as liquefied natural gas LNG.
The last gas tariff was announced in July 2019, when the BERC increased the bulk gas price by 32.8 per cent to Tk 9.80 per cubic feet from Tk 7.38.
Consequently, if the proposal is accepted, consumers will have to pay Tk 19 to Tk 20 per cubic metre of gas, while the current rate is Tk 9.80, according to sources at the BERC.