An official announcement made Wednesday said the raise, to 'adjust government subsidy', will take effect from the month of February next.
With previous process of increasing energy prices through public hearings at the regulatory commission now kept in abeyance through a legal measure, the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources issued the order of gas-price raise for all commercial uses, which economists say would have Domino effect.
Households, fertilizer factories, compressed natural gas (CNG) and tea estates are exempt from the increase in gas tariffs, according to a gazette notification giving effect to the measure.
Through a recent amendment to the Bangladesh Energy Regulatory Commission (BERC) the government vested in itself the authority to adjust energy prices, as and when necessary, bypassing the commission and public-hearing procedure.
The BERC previously had hiked natural gas tariffs by 22.78 per cent on average on June 4, 2022, after holding public hearing, with effect from June 1, 2022.
During making that hike the commission opined that the government would provide around Tk 60 billion as subsidy in gas sector-a measure to keep rates tolerable to consumers at this hour of crisis marked by global price rises.
With the latest hike the government raised the maximum tariff for government power plants, independent power plants (IPPs) and rental power plants owned by private sector to Tk 14 per cubic meter from previous rate of Tk 5.02--which comes to a 178.88-percent rise.
Small and cottage industries will have to count the second maximum hike to Tk 30 per cubic meter from previous Tk 10.78, which accounts for a rise at 178.29 per cent.
The BERC in its June 2022 order had lowered tariffs for small and cottage industries by 36.74 per cent to Tk 10.78 per cubic meter from previous Tk 17.04.
In the current raise, the government increased natural gas tariffs for captive power plants, small power plants and merchant power plants by 87.50 per cent to Tk 30 per cubic meter from previous Tk 16 per cubic meter.
Big industries are to pay bigger gas bills by 150.41 per cent to Tk 30 per cubic meter from previous Tk 11.98 per cubic meter.
For medium-category industries the tariff has been hiked by 154.66 per cent to Tk 30 per cubic meter from previous amount of Tk 11.78.
Commercial consumers, including hotels, restaurants and similar business outlets, have to count higher bill rates by 12.80 per cent to Tk 30.50 per cubic meter from previous Tk 26.64.
Tariff for compressed natural gas (CNG) is kept unchanged at Tk 43 per cubic meter--apparently in view of its immediate knock-on effect on public transport and most other sectors.
The government also kept gas tariff for fertiliser factories unchanged at Tk 16 per cubic meter.
Household consumers also get relieved from counting additional cost for cooking as it kept unchanged the gas tariff for single burners at Tk 990 per month and for double-burner users at Tk 1,080 per month.
Metered household consumers will also pay Tk 18 per cubic meter as they paid before as the government did not raise tariff for them, too.
Before June 2022, the BERC had hiked natural gas tariff by 32.8 per cent on average on July 1, 2019. Earlier, it had hiked natural gas tariff by 22.70 per cent on average for the consumers in March 2017. In September 2015, the commission had hiked the average gas tariffs by 26.29 per cent. Previously the tariff was hiked by 11.22 per cent in 2009.
Meanwhile, businesses and energy experts have termed the hike 'too much' and said it would reduce competitiveness of the country's growing industrial sector.
It will push up inflation and raise prices of all essentials, worsening the already-strained fiscal condition of commoners, they said.
