The Bangladesh Energy Regulatory Commission is likely to introduce a regulation on fixing the prices of petroleum products. A BERC official told, ‘A draft of the regulation is at the final stage and soon the commission will send it to the law ministry via the Energy Division of the Ministry of Power, Energy and Mineral Resources for vetting.’ He said that the commission would circulate the regulatory notification if and after the law ministry approves the draft.
Officials of the energy sector said that once the regulation is framed, the energy ministry will lose its power to fix fuel prices.
According to Section 59 of the Bangladesh Energy Regulatory Commission Act 2003, the commission is supposed to frame regulations on price fixing for power generation, power and energy transmission and distribution and energy storage.
The Act also made BERC the authority for fixing the prices for the agencies dealing with power and energy in line with the regulations in the sector, but it is yet to frame regulations on price fixing for the agencies dealing with petroleum products like diesel, kerosene, petrol, liquid petroleum gas, etc.
The Energy Division, without any previous notification, has been increasing the prices of petroleum products by using its executive power, saying that the pre-announcement would motivate the hoarders to stock petroleum products and create an artificial shortage.
The Energy Division in 2011 increased the price of furnace oil by around 131 per cent in six phases, and of other petroleum products like diesel and kerosene by around 39 per cent in four phases.
Experts and stakeholders raised questions about the justification of the hike which has increased the prices of essentials and further increased the cost of living.
When asked why the commission did not play its role in price fixing of petroleum products, commission member Salim Mahmud told, ‘It is the standard practice for the commission to fix the price of power and energy in line with the regulations. The commission is not exerting its authority since it has not yet framed the retail tariff regulation for petroleum products.’
He also said that the commission would announce the prices of petroleum products with proper precautions so that hoarders would not be able to hoard the products.
Source : energybangla
