Likely gas price hike may affect business growth: DCCI

Government is planning to raise tariff of natural gas again within a year as reported by the press recently. According to the report, government proposed 88 percent on an average gas price hike and the public hearing will be held on 7th August, 2016. The proposal includes 140 per cent hike for domestic use, 130 per cent for captive power plants and 62 per cent for industries. According to BERC, gas used in fertilizer producing factories will see a rise of Tk. 1.83 per cubic metre which is Tk. 2.58 now. According to BERC, Tk. 16.80 per cubic metre is proposed for domestic use which is Tk. 7 now. Tk. 19.26 per cubic metre is proposed for captive power plants which is Tk. 8.36 now.

When the country is experiencing stagnation of adequate gas supply, the proposed 140% tariff rise will adversely affect the cost of doing business and inflation, export competitiveness and industrial production cost. Price hike of gas used in fertilizer production will increase the production cost of agricultural goods which may increase the overall inflation in the country. The fuel price in the international market is quite low than the previous years. DCCI suggests the government to import this low-cost fuel from the international market to meet the domestic industrial demand as an alternative of gas price hike.

If price hike of gas comes into effect, country’s RMG and other import substitute export-led industries may lose global market share. In addition, gas price hike may affect transportation cost, cost of doing business, cost of electricity production, cost of living, prices of essential commodities. Besides, it may create an excuse for illegal and immoral manipulation for price hike affecting purchasing power of common people.


DCCI thus expresses its deep concern over the proposed price hike of gas and advocates for adequate and regular gas supply to the industries to meet the increasing demand. We should also look for alternative primary energy sources for future energy security, DCCI states.

DCCI feels, gas price hike now will fade the dream of graduating Bangladesh into a Middle Income Country by 2021 and becoming 30th largest economy by the year 2030. For the greater interest of our accelerating economic growth, DCCI requests the government to re-consider the decision and not to raise gas price at this moment.