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Big jump on gas price economics

The government has increased the prices of all types of gas, including households and industry. The average gas price per meter cubic meter was increased by Tk. 38. 38 paci to Tk 9.00 / 80. This means that gas price increased by 32.8 percent in one jump. This is the largest increase in the country's history. As a result of this increase, the cost of all customers will be an additional 8,000 620 million behind.

Meanwhile, the Bangladesh Consumer Association (CAB) says gas billing is unreasonable and unjust. And a large number of retailers said that rising gas prices would increase the prices of many products and services. However, it is more important to ensure a steady and stable supply of pressurized gas. The industries are damaged due to the unavailability of pressurized gas. If distribution companies are cautious in supply in parallel with price increases, price increases will greatly reduce losses. But otherwise it will be a huge loss of industry and trade.

The Bangladesh Energy Regulatory Commission (BERC), the regulatory body for the energy and energy sector, issued a circular on Sunday. According to the increased value, the monthly bill of the oven used in the house increases from 750 to 925 kn. Monthly account of two ovens increased from 800 to Tk 975. This means that the price of both kilns increased to Tk 175. The price per cubic meter used by the household is 9 to 10 pieces of 12 rupees of 60 pairs.

BERC has increased gas prices at the highest rate given the current price growth rate. This year the average gas price per cubic meter grew by 32.8 percent. Earlier, in February 2017, BERC announced an increase in gas per cubic meter by an average of 22.7 percent. After the first step was effective, the second step of the court verdict was canceled. In August 2015, a public announcement was issued by increasing the gas price by 26.29 percent. That is, the announcement of the biggest increase in the gas sector has come in the gas sector. The previous inflation rate was about 20 percent, worried people said.

BERC President Monwar Islam said the new price was determined in terms of the demand and supply situation and the gas reality. The price increase is bearable and realistic in the buyer mode. Answering the question, he said, good news for the consumer is that they did not get gas before, now they can get gas. However, in the context of complaints that industrial subscribers do not receive the appropriate gas, the president said, we will give him a minimum remuneration. At the same time, all industrial customers are given instructions for obtaining an EVM gauge.

Then there were the other three members of the commissioner – Rahman Murshed, Mahmoudul Haque Bhuiyan and Mizanur Rahman. They said the government was pushing for imports of expensive LNG after reducing domestic gas reserves. It is important that gas prices increase the price of gas rather than gas or less. Thus, the price of gas at user level increases. Today, the new price increase will be worth July 1. For example, postpaid users will be able to pay new costs in July. And subscribers will be charging money at a new price today.

According to the new value, the price of gas per cubic meter used for electricity production was increased from 3 to 16 pairs to 4 holes 45 paise. The price of gas in the fertilizer class increased from 2.71 Rs to 4 and 45 paise, and the prices of tea gardens rose from Tk. 45 on Tk 10 to 70 pause. Gas price in the industrial sector increased from 776 to Tk. 10, 70 paise.

The cost of gas per cubic meter was set at 4.45 per cubic meter for power generation (own power) at 13.85 rpm and the use of the fertilizer plant would be Tk 4.45 per cubic meter. In addition, Rs 10.70 per cubic meter for industrial use, Rs 10.70 per cubic meter for garden use, 23 rupiahs in the hotel restaurant in the commercial sector, 17.04 for small and domestic workers, and 43 rupiahs in CNG .

Converted natural gas or CNG prices used as vehicle fuel increased from 40 RS to 43 Rs per cubic meter. At this increased price, the price of food gas is fixed at Tk 35 and the operating margin on Tk 8.

The power of detention is fixed at TK 9.66 to 13.85. Gas price per cubic meter in hotels and restaurants in the commercial sector increased by 17 rupees four times to 23 rupiahs. But the price used in small and domestic works is 17 paise four paise.

According to the BERC, the amount of spent gas in the next year will be total expenditure up to the level of customers up to 18 thousand 730 kuna. By selling gas at a higher price to meet the costs, the government will generate revenue of Tk 8,620 crore. Which is 44 percent more than current earnings. The Fuel Safety Fund will be raised from TK 2,420 crore The remaining 7,000 690 crowns will be awarded as subsidies or financial assistance to the government.

But Cabin Energy Advisor Professor Shamsul Alam said the reason for rising gas prices was not publicly demonstrated. It is possible to secure the company's current profits due to imports of LNG, and the reason is that the costs of the company will increase. The argument that fuel prices will increase in the future is also not logical. It is possible to reduce the price of gas by reducing corruption, theft and loss of the system. The pockets of the group will fill the pockets and the pockets of the general public will be empty. The price increase will create an unjust situation.

Does electricity prices grow?

Electricity prices also increase if gas prices increase. Now 57.33 percent of the country's production is in the production of electricity. Increasing the price of gas will also increase the cost of electricity generation. However, the BERC believes that if gas gets more gas, the PDB will produce more energy than gas stations. On the other hand, LNG will reduce the production of electricity. According to average estimates of the year, the cost of electricity generation will not increase. Even the rate at which the price increases does not require additional subsidies.

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In this regard, the president of BERC said that if coordinated here (electricity producers), then we may not need further price increases. But if they offer a value correction, the commission will consider that application.

Ittefaq / Nuhu

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