Gas Price Hike: Single Burner Tk 990, Double Burner Tk 1080

Gas price for non-metered double burner domestic users has been increased to Tk1,080 from the current Tk975 a month.

Bangladesh Energy Regulatory Commission (BERC) announced the tariff order on Sunday.

With the latest development, per cubic metre gas will cost Tk 11.91 – over Tk 2 hike from the existing Tk 9.70. The gas price hike will be applicable from June.

Price of a single burner will rise to Tk 990 per month from Tk 925 while price of a double burner will rise to Tk 1,080 from Tk 975. 

In the last 13 years, gas prices have increased by 129.49%. The last time the BERC hiked the average gas price by 33% to Tk9.80 per cubic metre was in June 2019.

In January this year, Petrobangla proposed that the BERC increase the average gas price up to Tk15.30 cubic metre, while six gas distribution companies demanded an increase in the gas price up to 117% to Tk20.36 per cubic metre. 

In the proposal, Petrobangla said the gas price needs to be increased as it has to import LNG at high prices from the spot market amid the volatile international market. 

At present, only 3-4% of the total 3,000 million cubic feet of daily gas supply comes from the spot LNG. 

In March, BERC held a four-day long hearing on the gas price hike proposal. 

At the hearing, Professor Dr Shamsul Alam, senior vice-chairman of Consumer Association of Bangladesh, said this is not justified to increase the total gas price for the 3% of the spot LNG. 

"Besides, the distribution companies are all in profit and they have failed to justify price increases. Instead, we have shown that the gas price can be reduced by Tk0.16 per cubic metre," he said at the hearing.

"At present, people do not have the ability to pay the extra cost amid rising inflation," he added.