The Bangladesh government, through an executive order, increased retail piped gas prices in four consumer categories by up to 179 percent with effect from February 1 perhaps to comply with IMF conditions.
The increase in gas prices was expected by the businesses but the steep increase came as a shock for them particularly the ready-made garment sector. President of the Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan deplored the hike warning that the cost of production would increase substantially as a result of the current gas price hike. He warned that the readymade garment sector is severely impacted. The exporter would struggle as they would lose competitiveness in the global market.
The apparel leader also expressed concern that the resultant inflation negatively impacts the livelihood of the common man. He also appealed to the government to bring down prices to reasonable levels to protect the textile industry and employment. He was of the view that if system losses are reduced there would be no need to increase the gas price. He urged the authorities to take strict action against illegal gas connections.
The price hike for the four categories of gas consumers includes captive power, or electricity generated by factories for their own use, where the cubic meter price of gas has been increased to Tk30 from Tk16 which is an increase of 88 percent. The rate per cubic meter of gas for the small, cottage, and other industries was increased to Tk30 from Tk10.78.
The rate per cubic meter of gas for the medium industry was increased to Tk30 from Tk11.78 marking a 155 percent increase. The lowest increase of 150 percen5 was announced for large industries with the price per cubic meter of gas increasing to Tk30 from Tk11.98. The gas price hike came barely five days after the electricity price was hiked by five percent a unit and the electricity demand charged by up to 42 percent.
Bangladesh apparel sector under pressure as gas prices hiked up!
