The government is going to increase gas price. Steps are being taken to increase the price of gas soon to adjust to the imported LNG prices.
But it is necessary to think about the logic of this initiative. High price of gas will increase the cost of production of the industries. For this reason, the development of industrial sector will be hampered and the small and medium industries of the country will face a problem. It will affect not only the industrial sector but also the common people.
In fact, the increase in gas prices will have a negative impact on the country's industrialization, investment and employment. Fuel price increase discourages investment. Leaders of business organizations believe that the decision to increase the price of gas will be suicidal. In this context, it is important to remember that only rich people are not consumers of gas and electricity, people of low-income group are also consumers. In this circumstances, the issue of low-income people should also be considered.
In a dialogue recently organized by the Center for Policy Dialogue (CPD), a private research organization, speakers said that power and energy sector of the country could not come out from the emergency situation. But this situation needs to end quickly. Speakers also urged the government to take steps to eliminate irregularities and corruptions in the sector and take initiatives according to government procurement rules.
One of the most discussed issues in the country is the electricity’s system loss. State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that system loss is much lower than in the past. We think that the system loss can be reduced more gradually. This requires proper action.
Speakers underscored the need for taking steps to collect energy and coal in the country. If new gas fields are found, then it will be possible to overcome the energy crisis problem in the country. In this case, we will have to strengthen BAPEX without being dependent on foreign companies.
We need to have long-term policies for increasing oil and gas prices. As a result, it can be easy for the entrepreneurs to make decisions and plans for investment. We believe that keeping the pace of economic development uninterrupted, it is necessary to keep the price of gas at a tolerable level. But if the price increases, it will have huge impact. Thinking about these issues the government should review the decision.
risingbd / Dhaka / March 15, 2019 / Ali Nowsher / Mukul