The year in review: 2022

Dear energy hikes basic food prices


M AZIZUR RAHMAN | Published: January 01, 2023 08:56:12 | Updated: January 01, 2023 12:18:53


Dear energy hikes basic food prices

The prices of all types of energy -- natural gas, electricity and petroleum products -- soared astronomically in 2022, contributing to a hike in that of all essential commodities across the country.

The Russia-Ukraine war, dollar crisis and volatile international market were major causes as cited by the government and the energy regulator amid strong protests from business rights groups.

Last year, the Bangladesh Energy Regulatory Commission (BERC) rule was amended to strip the regulator of its authority to hold pre-hike public hearing amid strong opposition from various quarters.

The government can now fix, adjust or readjust energy prices at consumer level on its own.

The amendment was meant for adjusting subsidy, public interests and ensuring uninterrupted energy supply for agriculture, industries, fertiliser, trade and domestic purposes, according a gazette notification.

Other objectives included taking prompt steps for enhancing electricity production, energy transmission, marketing, supply and distribution, it added.

Officials said the hike in energy prices was initiated half way through last year when the BERC increased average natural gas tariff by 22.78 per cent on June 05.

The weighted average natural gas tariff soared to Tk 11.91 per cubic metre from Tk 9.70 per cubic metre.

With this hike, fertiliser factories are counting the highest hike in tariff by 259.55 per cent to Tk 16 per cubic metre from Tk 4.45.

Household consumers having a single burner now pay a 7.03-per cent higher tariff at Tk 990 monthly instead of the previous Tk 925 and those with double burners pay Tk 1,080 with a 10.77-per cent hike.

Metered household consumers now pay a 42.86-per cent higher tariff at Tk 18 per cubic metre compared to the previous Tk 12.60 per cubic metre.

Natural gas tariff for power plants was hiked by 12.81 per cent to Tk 5.02 per cubic metre from the previous Tk 4.45 per cubic metre.

Captive power plants are counting an increased tariff by 15 per cent to Tk 16 per cubic metre from the previous Tk 13.85.

Natural gas tariff for big industries was increased by 11.96 per cent to Tk 11.98 per cubic metre from the previous Tk 10.70 per cubic metre.

For medium category industries gas tariff was been hiked by 10.09 per cent to Tk 11.78 per cubic metre from the previous Tk 10.70 per cubic metre.

Natural gas tariff for hotel and restaurants under commercial consumers segment was hiked by 15.83 per cent to Tk 26.64 per from the previous Tk 23 per cubic metre.

For tea estates, new tariff has been set at Tk 11.93 per cubic metre from previous Tk 10.70, witnessing a hike by 11.50 per cent.

Tariff for compressed natural gas (CNG) remained unchanged at Tk 43 per cubic metre to check any unexpected consequence on transport fares.

Gas tariff for small and cottage industries were, however, cut by 36.74 per cent to Tk 10.78 per cubic metre from previous Tk 17.04.

After the gas tariff hike, the government in an executive order increased petroleum prices by up to 51.68 per cent on August 05.

Twenty-four days later, the government on August 29 cut diesel, octane and petrol and kerosene prices by Tk 5.0 each.

The price of diesel and kerosene now stands at Tk 109 per litre, petrol at Tk 125 and octane Tk 130.

Following the tariff hike of gas and petroleum products, Bangladesh Power Development Board sought to raise bulk power tariff on the pretext of higher generation costs for increased oil-gas tariff.

After holding public hearings, the BERC raised bulk power tariff by 19.92 per cent with effect from December 2022.

With the hike, the weighted average bulk electricity tariff increased to Tk 6.20 per unit (1.0 kilowatt/hour) from the previous Tk 5.17 per unit.

Bulk electricity consumers now purchase electricity from the BPDB at 19.92 per cent higher rates for supplying electricity to retail consumers.

After the hike in bulk electricity tariff, power distributors, including BPDB, Dhaka Power Distribution Company, Dhaka Electric Supply Company, West-Zone Power Distribution Company and Rural Electrification Board sought to hike retail-level tariff for end-users.

The energy regulator has already arranged a two-day public hearing starting from 08 January 2023 to justify power tariff hike proposals at retail level by different state-backed distribution companies.

Sources said a decision on new retail power tariff might come in the first quarter of the English New Year 2023.

azizjst@yahoo.com

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