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The Financial Express

New gas tariffs will create energy poverty: M Tamim

| Updated: January 19, 2023 10:14:57


New gas tariffs will create energy poverty: M Tamim
New natural gas tariffs will create 'energy poverty' in the country as a section of people will not be able consume energy at the newly hiked rate, energy expert professor M Tamim forecast.

Overall costs of generating electricity will increase further due to higher tariff for power plants, he said.

Grid-connected and captive power plants consume around 56 per cent of natural gas in total, of which the grid-connected power plants consume 40 per cent of overall gas and 16 per cent is consumed by captive power plants, says Tamim, who was in charge of Bangladesh's energy sector during caretaker government 15 years back.

Mr Tamim also was skeptical as to whether the government would increase natural gas supply after the latest tariff hikes.

The BERC previously had raised gas tariffs by around 22.78 per cent having assurance from Petrobangla of increasing re-gasified liquefied natural gas (LNG) supply to the tune of 684.84 million cubic feet per day (mmcfd).

But re-gasification of LNG fell below 500 mmcfd after the tariff hike, he laments.

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