PETROBANGLA鈥橲 proposal seeking an increase in gas prices supplied to industries and captive power plants by 152 per cent and 140 per cent respectively, which the government says is unpleasant and unavoidable, is worrying in that industrialists say that such a move would increase production cost that will eventually fall on consumers. Whilst the government appears unwilling to improve the efficiency of the agency and end corruption and irregularities in the process, the industrialists note that it appears something like resolving the issue by arbitrarily increasing prices. The National Board of Revenue 鈥� which has recently increased value-added tax and supplementary duty on 43 products and services such as clothes, restaurant bills, liquefied petroleum gas, soap, detergent, tissue paper, biscuit, coils, etc, adding to the cost of living 鈥� has also doubled the income tax on industries making motorcycles, freezers, refrigerators and air conditioners from 10 per cent, which will remain in force in 2026鈥�2031 financial years. The increase in gas prices for industries and captive power plants and in regressive taxes on products, services and income of industries making motorcycles, refrigerators and air conditioners suggests that the government is largely keen on mobilising revenue by way of direct measures hardly thinking about the consumers, who are already constrained by high prices and high inflation.
Petrobangla鈥檚 proposal at hand, which seeks gas prices for industries and captive power plants on a par with the price of imported liquefied natural gas, would increase the price to Tk 75.72 a unit, from Tk 30 a unit for industries and Tk 31.50 a unit for captive power generation. Gas prices for industries had been Tk 16 a unit in January 2023 before an increase by 179 per cent was effected that month. Although the price could come into force in March after a public hearing, it does not bring much hope as the Energy Regulatory Commission has always acted negligibly in favour of consumers. The proposal is also discriminatory in prices for the industries and plants that seek new connection, are already connected but not supplied with gas and are receiving gas. Whilst the proposal is discriminatory, businesses say that the sanctioned load is an unreal proposition as some industries in Gazipur pay for 150 pounds per square inch of load but receive only 2 pounds per square inch. This suggests that businesses are paying for what they are not given. Petrobangla promises an increase in gas supply from domestic and import sources but the liquefied natural gas handling capacity is in a preliminary stage and it cannot be increased soon. There have also been no hydrocarbon exploration initiatives for long and domestic sources cannot be relied on. A 2022 Energy Regulatory Commission evaluation says that Petrobangla had pocketed Tk 25.38 billion by importing gas less than promised in 2019鈥�2021 financial years. The money could be used to handle the situation.
The government should, therefore, review its decision as it is not the time when businesses are recovering from Covid impact, dollar shortage and staggering inflation. Any increase in gas prices should first entail initiatives to improve efficiency and to end corruption in the agencies and the process.