Gas price hike will make a serious affect on the national economy causing immense sufferings of people, experts say.Abul Barakat, eminent economist and professor of Department of Economics of Dhaka University told The Asian Age: "The hike of gas price will increase costs of all kinds of production and will push to hike of all commodities causing to sufferings to general people."
He also said: "It will also cause increase of transport fares. Government should tell us that how much fares can be increased by transport owners. Poor people will be directly affected for this decision." Professor Barakat also said, government should run some public hearings before hiking gas rates.
The Bangladesh Energy Regulatory Commission (BERC) announced 22.7 percent hike of gas price which will increase the cost of livings of common people. The new price will come into effect in two phases. The fresh announce came at a press conference at commission office in city on Thursday last.
According to BERC announced prices of household connections for single burner will increase to Tk 750 which was Tk 600, for double burners Tk 800 which was Tk 650. The new price will be implemented from March 1.The price will increase again to Tk 900 for single burners and Tk 950 for double burners from June 1.
The commission also announced increasing price of compressed natural gas (CNG) to Tk 38 per cubic meter which was Tk 35. And from June 1 the CNG price will be Tk 40 per cubic meter.Government's gas prices hike for the second time in two years will lead to higher costs for the country's $28 billion garment export industry, said its leaders.
Mohammad Siddiqur Rahman, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said "The price hike is a blow to the apparel exporter that largely depends on low wages and trade deals with Western countries to stay competitive."
He said, "At present, demand is low and the prices of readymade garments are decreasing by the day," "Now our costs of production will increase, lowering our competitiveness further", Siddiqur added.He also said it was early to say how much costs will rise due to higher electricity prices linked to the gas price revision. This prices hike is not an opinion of general people but it reflects government's decision, says industrialist who related to produce their product by gas.
Regarding this, Professor, Badrul Imam, Department of Geology, University of Dhaka and energy specialist said, a significant number of gas line holder get their connections available one or two hours in a day including a large area of Dhaka and Chittagong.
"If they are told to give 22.7 percent extra money for their existing service that cannot be morally justified," he said.The economy of the country is not ready to bear such imposed tariff of gas, Professor Badrul also added. The BERC in last 2015 raised the prices of natural gas by 26.29 percent on an average at consumer level.
In August 2016, the BERC arranged a series of public hearing on the proposals of natural gas utilities for raising the prices again by 94 percent on an average.
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