The New Nation - Internet Edition

Staff Reporter

The Bangladesh Energy Regulatory Commission (BERC) Chairman Gholam Rahman yesterday termed the Petrobangla proposal for raising gas price 'unjust and unreasonable' and said that the commission is not permitting the gas price hike this fiscal.

"We (the commission) will allow 10 to 15 per cent increase in price on July 1 for creating a 'Gas Exploration Fund'," the BERC Chairman said while announcing the commission decision on enhancement of natural gas prices at its office.

The gas exploration fund can ensure future demand as well as protect the right of consumers in the long term.

"The Petrobangla has spent Tk 109 to extract 1000 cubic feet of gas. It sold the same gas at Tk 111. So, the Petrobangla cannot prove its proposal as just and reasonable," the BERC Chairman said adding, "It is necessary to re-fix gas price for long term gas exploration and supply by the state-owned companies."

The foreign oil-gas companies have supplied 49 per cent gas in 2008 which was only 21 per cent in 2003, the commission informed. The BERC has directed the Petrobangla to improve service quality and preparing a five-year long strategic plan to ensure demand forecast.

The BERC also asked the Petrobangla to recover its arrear of Tk 24,661.51 million from different types of customers.

BERC member Md Mokhlesur Rahman Khandker, Salahud Din Ahmed, Md Khalelur Rahman, Prof Dr M Nurul Islam of BUET were present during the public hearing.

Earlier, the BERC held on September 24, 2008 a public hearing on the issue of gas price where Petrobangla pleaded for an average 65.92 per cent hike while representatives from other stakeholders opposed the demand.

Most of the export-oriented sectors are opposed to the price-hike idea. They argue that it might push them into perils particularly because of the worldwide economic recession.