Commercial gas price hike won’t push power price up: State minister

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said the government is planning to hike gas prices for commercial connections but thinks it will not drive power prices.

The state minister took questions from reporters after a programme at the Bidyut Bhaban in Dhaka on Wednesday.

“There are many dual-fuel power stations that are using high-priced oil due to the gas crisis. These won’t need to use oil when the scarcity of gas goes away. These will be run by gas,” he said, referring to the import of liquefied natural gas or LNG, set to begin in late April or early May.

The government says 500 million cubic feet gas would be added to the national grid per day from the imported LNG from late Aril.

The distributors think the gas prices should be readjusted as the import price of gas will be more than that of domestic ones.

Titas, Bakhrabad and the other distributors have sent proposals on gas price hike to Bangladesh Energy Regulatory Commission or BERC.

“They (BERC) will make the final decision. Gas prices for commercial connection will rise, but not for household lines,” State Minister Nasrul said.

Asked whether power prices will also go up along with gas prices, he said, “Rise in expenses is a matter of concern. But I don’t think we will need to raise power prices now. It doesn’t seem to me that there will be any change in the prices (of power).”

Nasrul said he believed gas import will bode well for power generation even if the price is on the high side.

He said the import price of gas would not exceed the oil prices.

Bangabandhu Engineers’ Council organised the programme, a discussion, to mark the Independence Day.

Power Development Board Chairman Khaled Mahmud chaired the discussion. The Council’s President Md Habibur Rahman and General Secretary Nuruzzaman, among others, also spoke.