Bangladesh on Sunday raised the prices of gas again, for the eighth time in the past 10 years!
For industrial use, price has been increased by 37.88% from Taka 7.76 to Taka 10.70 per cubic metre while for captive power it has been increased by 43.97% from Taka 9.62 to Taka 13.85.
The price had to be increased as country’s gas generation, distribution and transmission companies called for it because of a rise in gas production price due to import of liquefied natural gas, explained Bangladesh Energy Regulatory Commission (BERC) the reason behind the latest increase.
But, as it would have been, the move has evoked sharp reactions from the apparel and textile industry, which is already reeling under falling profit margins while being forced to pay more for raw materials and workers’ wage.
“On the basis of the information I have, gas bill will take up around 1.5 per cent of the manufacturing cost. So 38 per cent increase in gas price means almost 1 per cent increase in production cost. This may not sound much in terms of percentage, but for an industry struggling for every penny this will be another blow,” maintained the President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Rubana Huq, while underlining that the gas price hike would be another blow to the competitiveness of apparel and textile sector.