Bangladesh Energy Regulatory Commission (BERC) opened a stakeholder hearing on the pricing issue today and declared that it will guarantee a balanced gas price.
At the Bangladesh Institute of Administration and Management (BIAM) in the city's New Eskaton, the hearing on re-fixing the natural gas price in the fertilizer category—natural gas being its primary ingredient—began. "We will take the decision taking into account all considerations," said BERC chairman Jalal Ahmed.
He said agriculture sector must be taken into account, particularly in ensuring food security, while the commission would consider the Liquefied Natural Gas (LNG) import cost as well.
The state-run Petrobangla, a major stakeholder that mainly imports LNG, seeks to increase price to reduce subsidies and enhance import volume while another key-stakeholder Bangladesh Chemical Industries Corporation (BCIC), intends for the price to keep low to halt fertilizer price hikes.
The Petrobangla proposal before the commission stated that if the price was increased, they could import an additional seven LNG-filled cargoes for fertilizer production.
Petrobangla is currently supplying 165 million cubic feet per day (mmcfd) of natural gas to fertilizer factories—up from 130 mmcfd last month, according to Petrobangla Director (Operations) Engineer Rafiqul Islam.
BCIC, on the other hand, said if the gas price is Tk.30 per unit, then urea fertilizer production could be 20 lakh tons annually, and the per kg fertilizer production cost will be Tk.46, but the import cost will be Tk.61.
Another stakeholder, the Agriculture Ministry, said they have no proposal on the issue, but the ministry did not want any pressure to mount on farmers.
Ministry’s representative deputy secretary Moniruzzman, however, said if the production cost of fertilizer increases, the opinion of the finance ministry should be taken to settle the possible question on subsidies for farmers.
Petrobanglar and various distribution companies presented their proposals. Petrobangla Director (Finance) Mizanur Rahman, Director (Operations) Engineer Rafiqul Islam, General Manager Meherul Islam, Titas Gas Managing Director Shahnewaz Parvez, Karnaphuli Gas Distribution Company Managing Director Engineer Salahuddin, Bakhrabad Gas Distribution Company Managing Director Engineer Fazle Alam, CNG Filling Station Owners Association leader Rezabuddaulah, and journalist Lutfor Rahman Kakon, among others, participated in the discussion and question-and-answer sessions.
-BSS
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