Business leaders yesterday welcomed the decision of a gas price hike, which the government announced Thursday aiming to form a gas development fund with the extra earnings.
The businesspeople expressed hope that the fund will help ensure uninterrupted gas supply to their industrial units.
The price hike came to effect yesterday.
According to the new price structure, the monthly charge for a single burner gas oven has been fixed at Tk 400 against its previous rate at Tk 350, and for a double burner the rate is now Tk 450 against Tk 400 earlier.
The gas price for commercial use, including tea industry, has been raised to Tk 165 from Tk 148 per cubic feet (cft), while the price for fertiliser industry has been fixed at Tk 69 per cft from Tk 65.
Private sector power development companies will now pay Tk 79 against the previous rate of Tk 73 per cft to state-run Power Development Board.
The price has been raised to Tk 108 per cft from Tk 105 for captive power generating companies.
In his reaction to the price hike, Annisul Huq, president of the Federation of Bangladesh Chambers of Commerce and Industry, said production cost will increase, but a smooth supply of gas is also necessary for the industries.
"It's a dilemma. The government had no other alternatives for easing the gas crisis," Huq said.
He said it was the demand from the businesspeople that the government dig at least two wells every year to ensure better gas supply for the consumers. "Now the work for the government will become easy as it will be able to form the gas development fund," Huq said.
Abdul Hai Sarker, president of Bangladesh Textile Mills Association, said the idea of forming the gas development fund is good, but the government will have to ensure smooth supply of gas.
"We don't want to see any disruption in gas supply to the factories. If the enhanced rates can improve the gas crisis situation, I will appreciate the decision," he said.
Abdul Hafiz Choudhury, president of Metropolitan Chamber of Commerce and Industry (MCCI), welcomed the government move as he thinks it will enable the government to form the fund to ease the gas crisis.
"The price hike is reasonable although the MCCI had earlier suggested an increase in gas price by 8-10 percent," Choudhury said.
He said if the industries get uninterrupted gas supply, production will increase and there will be no bad impact on production cost.
Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association, said the timing of the decision was not right as the country's main export earner readymade garment sector is facing difficulties amid the ongoing global recession.
"We are under pressure now as the buyers are offering lower price making excuse of the recession. We are struggling to survive. I support the government decision, but the timing is not right," he said.
Echoing the views of Murshedy, President of Bangladesh Knitwear Manufacturers and Exporters Association Fazlul Hoque said if the government can ensure quality supply of gas, the price adjustment is "not a matter, but the factor is timing".
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