The country’s industrial sector is currently at a standstill. Industrial establishments are closing down one after another. Investors can’t make new industries for various reasons. The price of gas is being increased again in this tough time for the industrial sector. The Energy and Mineral Resources Division has recently given approval in principle to new gas rates for the industrial sector.
The new rates will require the entrepreneurs to spend more than twice the current price to buy new factory gas. As per the proposal, the gas price for the new factories will equal the import cost of Liquefied Natural Gas (LNG).
The proposal to revise the new price rates has already been sent to the Bangladesh Energy Regulatory Commission (BERC) through Petrobangla. The BERC authority received the proposal and held a meeting yesterday (Tuesday).
However, Power, Energy and Mineral Resources Adviser Muhammad Fauzul Kabir Khan told Bangladesh Pratidin that the final decision will be taken in this regard after the meeting and hearing with the gas distribution companies.
He said it is not possible to give gas at Tk30 per cubic meter as the buying cost for per cubic meter gas is Tk65. However, the new rates will not be applicable to old industrial customers. The government will already have to pay a Tk20,000 crore subsidy. So, it doesn’t want to increase the subsidy any more.
Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) President Mohammad Shahriar said, “We still didn’t get uninterrupted gas supply despite promise. Many factories have already closed for this reason.
If the price of gas is increased now again, then the gas-dependent factories will have to be shut down. Interest on bank loans has increased from 14.5 per cent to 16 per cent. If the price of gas increases again, the industrial sector will go to the verge of destruction. Hundreds of thousands of workers will become unemployed. Crimes like theft and mugging will increase all over the country.
Although the entrepreneurs have set up industries at various industrial parks after fulfilling conditions, the Bangladesh Economic Zones Authority (BEZA) has violated the agreements with the investors. BEZA couldn’t ensure the supply of electricity, gas and water connection. For this reason, many industries can’t go into production. Many factories didn’t get an uninterrupted gas supply. Many factories are on the way to closure due to gas shortages. In this situation, the price of gas is being hiked. Industrial entrepreneurs opined that this decision will impact the overall industrial sector. They said a new conspiracy has started to destroy the local industrial sector instead of encouraging production.
At present, industrial customers pay Tk30 per cubic meter of gas while it is Tk30.75 per cubic meter for captive power users. On the other hand, the average import cost of LNG is Tk 60-65.
According to the Energy and Mineral Resources Division, industries which have already received the deed of consent for power connection, will get 50 per cent of the supplied gas at the current rates and the rest price will be equal to the import cost of LNG. On the other hand, old consumers and captive power users will have to pay gas prices equal to the import cost of LNG if they use additional gas than their current demand.
bd-pratidin/GR
