High Court stays second phase of gas price hike for six months

The High Court has stayed for six months the second phase of gas prices hike that was to be effective from Jun 1.

It has also issued a rule asking why the public notice by the Bangladesh Energy Regulatory Commission (BERC) announcing the price revision will not be declared illegal.

BERC chairman and secretary has been told to come up with explanations by four weeks.

The High Court's order came on Tuesday after the hearing of a petition filed by the rights body, Consumer Association of Bangladesh (CAB).

Petitioner's counsel Md Saiful Alam said that the BERC announced hike in gas prices twice in a single notice, which he describes as 'illegal.'

"Besides that, according to the 2004 Energy Regulatory Commission Act, the price revision should be announced within 90 days after holding a public hearing," he told bdnews24.com.

Alam said they filed the petition with the High Court after BERC chief did not respond to a legal notice served to him.

The announcement of hike, to be effective in two phases in March and June, came on Thursday.

Household gas charge for a single burner stove will be Tk 750 from Mar 1 while for double burner stove Tk 800, up from the current Tk 600 and Tk 650 respectively.

In the second phase from Jun 1, the monthly charge for a single burner stove will be Tk 900 and for a double burner stove Tk 950.

Those, who pay the gas bills for household use through meters, will have to pay Tk 9.1 per cubic metre from March and Tk 11.2 from June. They are currently paying Tk 7 per cubic metre.

It means that stove-based charges are rising by 50 percent while meter-based gas cost will go up 60 percent.

Price of compressed natural gas (CNG), used for automobiles, will go up from Tk 35 to 38 per cubic metre in March and to Tk 40 in June.

The 14.28 percent hike will drive the public transport fare up.

For power generation, fertiliser production, industries and commercial entities, gas prices are rising by 5 to 50 percent.