The gas continues to haunt the textile industry through the government injecting additional 300 million cubic feet (mcf) gas into the national grid that mainly utilized the gas-based power plants to start operation during Ramadan.
An official of Bangladesh Textile Mills Association (BTMA) asking not to be named said there is little change in gas supply as the added gas is going to gas-based plants supplying power to the grid. Moreover, the economic zone in Rupganj of Narayanganj where food grain production factories operate has been given gas priority.
The factories in the same Narayanganj zone, home to some 100 textile mills, have been suffering due to the disrupted gas supply. This is despite the fact that they are paying a higher price for gas.
Gas supply to factories in Gazipur and Mawna areas improved a little bit less than their actual demand. Millers say they are finding it tough to survive. The government hiked the gas price for industries in February this year up to 179 percent with a promise to ensure an uninterrupted gas supply. The electricity prices have also increased.
In this situation, entrepreneurs fear that some industrial factories may be forced to close due to losses. A Rupganj-based textile miller said on average mills are running below 50 percent capacity due to gas shortage.
One miller said he used to pay Tk23-25 lakh taka in gas bills per month before the price hike.
Now the monthly bills have gone up close to Tk50 lakh. Abed Textile Processing Mills Ltd of Narsingdi used to pay Tk90 lakh a month for its dyeing unit before the gas price hike.
Now the company pays Tk2.30 crore. Industry association officials warn that many industries may not sustain themselves after the next three months if the gas supply is not adequate for industries.
According to data from Bangladesh Oil, Gas and Mineral Corporation, known as Petrobangla, the country has a daily gas demand of 3,600 to 4,000 mmcf.
As of January this year, the daily supply was about 2,650 mcf and it has now increased to 2,900 mcf, which is still around 1,000 mmcf less than the demand.
Prime Minister’s Private Industry and Investment Adviser Salman F Rahman has given assurance as the government is likely to defer the enforcement of the newly hiked prices of gas to April instead of February, in a bid to give some breathing room to industries.
