Gas prices rise amid supply uncertainty.
On the one hand, there is a financial crisis in LNG imports, and on the other hand, gas supply cannot be ensured according to demand. Amidst such uncertainty, the relevant government agencies and distribution companies are eager to increase gas prices.
Petrobangla and a distribution company have already proposed a price increase. The government agency Bangladesh Oil Gas Mineral Resources Corporation (Petrobangla) says that the government has no alternative but to increase gas prices to ensure supply for the demand that has been created now and the demand that will be created in the near future.
Business leaders, reacting angrily to this government initiative, say that this proposal has been made to destabilize the country. This will threaten the manufacturing industry, the best field of employment for a large number of unemployed people.
Rationale for price increase: The rationale for the proposal to increase gas prices is that if gas supply is to be ensured completely, the only way now is to import more LNG from abroad and supply it. And importing this expensive LNG will require a huge amount of money. As a result, to get gas, industrial owners will have to buy expensive LNG imported from abroad at the import price. Petrobangla has proposed to the relevant government department to increase the price of gas, highlighting the current demand for gas, the financial crisis, the subsidy picture and the gap between demand and supply.
Meanwhile, although Petrobangla has proposed to increase the price of gas in the industrial sector, the gas distribution companies want to increase the price of gas for non-metered customers in the residential sector. The distribution companies are preparing to increase the price. In this case, the argument is that residential customers with meters use less gas; but residential customers without meters use much more gas.
Angry businessmen: The proposal to increase gas prices has been termed as unreasonable by the country’s top business leaders. At a recent event, Bangladesh Textile Mills Association (BTMA) President Shawkat Aziz Russell said that if gas prices are increased, industrial entrepreneurs will be forced to close factories. The interim government has taken the initiative to double the gas prices without any discussion with the entrepreneurs. So what is the difference between the ousted Awami League government and the current interim government?
Bangladesh Chamber of Industry (BCI) President Anwar-ul Alam Chowdhury Parvez said that the labor-dependent future that we saw in Bangladesh is now turning gray. 37 percent of educated people are unemployed in the country. This cannot be solved without the manufacturing industry alone. In this situation, doubts sometimes arise as to whether we actually want industry. He said that on the one hand, if gas prices are increased, on the other hand, how will the industry survive if there is no supply.
BKMEA President Mohammad Hatem said that gas prices are so high that it is unacceptable. This proposal creates unequal competition between new entrepreneurs and old entrepreneurs. Which will create instability in the garment sector as a whole. He said, in this situation, we will also have to think about Bangladesh’s LDC graduation in 2026. If we go to graduation now, it will be a suicidal decision.
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