Govt plans gas price hike, prepaid meters for all connections

The government has plans to replace old gas lines with new ones and turn all meters prepaid in order to discourage household use of gas.

The government has also proposed hiking gas prices, State Minister for Power, Energy and Mineral Resources Nasrul Hamid Bipu told reporters at the Secretariat on Sunday.   

“We are discouraging household use of gas. We are taking a large project to replace the old lines with new ones and set up prepaid meters in Dhaka and elsewhere,” he said.

The government has approached Japanese foreign aid agency JICA to help it set up prepaid meters at all homes, according the state minister.

He hopes the project will start and end soon.

Ahead of elections, the government had abandoned plans to hike gas prices.

Bangladesh Energy Regulatory Commission or BERC had held public hearings on the proposed hike in gas prices but faced objections. It was even dragged to court.

“We’ve submitted the proposal to adjust gas prices. Now it depends on BERC whether it 
will approve it. We have been waiting for it since last year,” State Minister Bipu said.  

The government has proposed adjustment in gas prices to all connections – household and industrial, he said.

He argued that the government was giving Tk 60 billion in subsidy a year to supply gas.

“We’ve already spent Tk 140 billion for gas and need the same amount in the future. Where will we get the money if the prices are not adjusted."  

The state minister said gas prices would decrease once two land-based terminals for LNG and LPG are set up at Matarbari in Moheshkhali. “But it will take four to five more years,” he remarked.