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A four-day public listening to on the proposed gasoline worth hike ended on Thursday drawing stark criticism from each the patron representatives and different stakeholders.
Whereas presenting their reasoning, members together with representatives from households, CNG stations, eating places and industries voiced their stance towards the gasoline worth hike initiative.
Furthermore, the state-owned gasoline manufacturing and distribution firms that pleaded for the value hike couldn’t produce convincing arguments to the regulatory fee.
Md Abdul Jalil, chairman of the Bangladesh Vitality Regulatory Fee (BERC), mentioned the fee will announce its resolution inside 90 working days after scrutinising post-hearing paperwork and stakeholders’ opinions.
Jalil mentioned, “Petrobangla’s proposal to extend the value of gasoline just isn’t acceptable by way of rationality, equity and actuality. Any choice apart from the value hike shall be most well-liked. If not, then the value ought to be elevated to a sure restrict so that buyers don’t face any hardships.”
The general public listening to began on Monday on the Petrobangla and 6 gasoline distribution firms’ proposal demanding a 117% common hike in tariff on the retail degree, in addition to distribution cost hike of the respective distribution firms.
At current, the every day consumption of the gasoline is round 3,000 mmcf per day, of which 2,350 to 2400 mmcf comes from home gasoline fields and the remaining is being imported from the Center East which is named Liquefied Pure Fuel (LNG).
Of the imported LNG, round 100 mmcf comes from the spot market.
Due to this fact, Petrobangla proposed to extend the value to regulate the import price of LNG which is being imported from the spot market.
Nevertheless, client representatives and stakeholders protested the proposal claiming the hike just isn’t rational for less than 100 mmcf gasoline which is barely 3% of the full provide.
“Within the final two fiscal years, there have been 12 to 13% system losses in Titas Fuel Transmission and Distribution Firm Restricted. So, as an alternative of worth hike for 3% gasoline, we must always guarantee environment friendly use of the prevailing useful resource,” representatives mentioned.
On the ultimate day, BERC heard the proposals of Jalalabad Fuel Distribution Firm Restricted and Karnaphuli Fuel Distribution Firm Restricted.
Taking part within the listening to, Moazzem Hossain Alalm, joint secretary common of Bangladesh Nationwide Occasion mentioned, “Cease importing LNG from the spot market at increased costs. Folks’s monetary situation just isn’t in a good condition, even middle-income individuals are standing in lengthy queues behind Buying and selling Company Bangladesh’s (TCB) sale vans hiding their faces with masks as a result of hovering commodity costs. So, gasoline costs can’t be elevated additional.”
Earlier, officers of Jalalabad Fuel Distribution Firm Restricted and Karnaphuli Fuel Distribution Firm Restricted proposed to extend the gasoline worth by a mean 117% like different distribution firms.
In addition to, additionally they proposed to extend the distribution cost of the per cubic metre gasoline.
Nevertheless, the technical committee of BERC discovered that the Karnaphuli would wish Tk2314.40 crore in 2021-2022 fiscal 12 months, however it is going to earn solely Tk2025.02 crore in the course of the interval.
Due to this fact, the corporate will want solely Tk0.09 distribution cost for wheeling per cubic metre of gasoline, as an alternative of the prevailing Tk0.25.
However, Jalalabad Fuel Distribution Firm Restricted proposed to extend the distribution cost to Tk0.5518 per cubic metre from the prevailing Tk0.25.
However the BERC technical committee mentioned the corporate will earn extra income than its operational bills. Due to this fact, its current distribution cost could possibly be lowered from Tk0.25 per cubic metre to Tk0.12.
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