The Bangladesh Energy Regulatory Commission (BERC) recently hiked gas price for industrial use by 37.88 per cent from Tk 7.76 to Tk 10.70 per cubic metre, while for captive power, it was raised by 43.97 per cent from Tk 9.62 to Tk 13.85 per cubic metre. For the power sector, it was increased from Tk 3.16 to Tk 4.45 per cubic metre—a 40.82 per cent rise. The hike was effective starting July 1, according to Bangla media reports. Bangladeshi exporters, especially those in apparel and leather sectors, will reportedly lose competitive edge in global markets as they fear the latest hike will push up production costs. Industrialists and trade body leaders expressed deep concern over the decision. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Rubana Huq said gas bill now will take up around 1.5 per cent of the manufacturing cost. A 38 per cent increase in gas price means almost 1 per cent rise in production cost, she said. Meanwhile, there have been suggestion to the government to raise gas price in phases, which may mitigate the pressure. The leather sector, the second largest export earner after the apparel industry, will also face competition as the price of raw materials will go up. The business class has also called for a long-term policy on gas and electricity so that investments can be made with a sustained and futuristic aim.
Source – Fibre2Fashion.
