Government authorities again moved to increase gas prices, except the already-hiked tariffs of compressed natural gas (CNG), according to a senior official of the Energy and Mineral Resources Division said. Bangladesh Oil, Gas and Mineral Resources Corporation (Petrobangla) has proposed raise.
“We are considering hike in domestic gas prices by over 100 percent while it might be raised around 30 percent to 40 percent for other consumers as per a government executive order,” the official of the EMRD told on condition of anonymity.
He said Petrobangla has placed a proposal to increase gas prices in different consumer levels and the government would consider the raise immediately, the official concerned said.
Responding to a query about the recent gas-price hike, Petrobangla chairman Prof Hossain Monsur told daily sun, “I personally opine for an increase in gas prices for reducing subsidy.”
The gas prices should be as per its production cost, he pleaded.
“It’s quite impossible to accelerate country’s development process through providing huge subsidy on the energy sector,” he opined.
The rate for single burner in residences has been proposed at Tk 850, more than double from Tk 400 now, while it is Tk 900 for double burners from the existing Tk 450
The Petrobangla has also placed a proposal for raising the price of per-cubic-metre gas for industries to Tk 6.71, Tk 0.85 higher than the existing rate.
Gas price for captive generators has been proposed at Tk 6.36 from Tk 4.18, while it is at Tk 3 from Tk 2.58 at fertilisers, Tk 3.28 from Tk 2.82 at power plants and Tk 12.36 from Tk 9.47 at commercial buildings.
The price of the CNG will remain unchanged, the Petrobangla proposal said.
The government had increased CNG price by nearly 50 percent to Tk 25 per cubic metre during the middle of last year.
In 2009, the Bangladesh Energy Regulatory Commission (BERC) had increased the gas price by an average 11.22 percent. “We will hold an emergency meeting within a week to review the gas prices proposal,” a senior official of the EMRD told daily sun.
He said that the EMRD would place the proposal before the BERC for consideration after getting Prime Minister Sheikh Hasina’s approval in this regard immediately.
Power plants now consume 715 million cubic feet per day (mmcfd) of gas while it is 215mmcfd for fertilizer, 50mmcfd for non-grid power, 331mmcfd for captive, 114mmcfd for CNG, 350mmcfd for industries, 258mmcfd for household and 31mmcfd
for commercial and others, Petrobangla official said.
The government has already suspended gas supply for domestic while it goes at a slow pace to approve new connections for industrial and CNG stations due to over 500mmcfd gas shortage against the production of around 2000mmcfd, officials said.
Gas crisis forced several industrial units in the commercial city of Chittagong and Dhaka to halt while it also hampers around 600MW electricity generation, the officials added.
Source: energyBangla
