A recent BIDA letter urged the Bangladesh Energy Regulatory Commission (BERC) to revise gas prices and adopt an investor-friendly tariff structure. Failure to do so would discourage fresh investment and hinder the development of a competitive market environment in the country.
Terming the new gas price hike ‘discriminatory’, the Bangladesh Investment Development Authority said it will disrupt FDI flow by creating a negative perception among potential investors.
A BIDA letter urged the Bangladesh Energy Regulatory Commission to revise gas prices, and adopt an investor-friendly tariff structure and a more inclusive and non-discriminatory approach to subsidy rationalisation.
“A sudden announcement of discriminatory gas price hikes right after such a successful summit is likely to create a negative perception among prospective investors,” the letter read.
BIDA executive chairman Chowdhury Ashik Mahmud Bin Harun sought the active cooperation of BERC chairman Jalal Ahmed to take prompt action on the matter.
On April 13, BERC announced a 33-per cent hike in gas prices for new consumers and existing users expanding beyond 50 per cent of their sanctioned load.
Businesses have opposed the hike, saying the step could derail the government’s broader economic goals at a time when Bangladesh is striving to attract foreign investment and revive industrial growth, according to domestic media reports.
The BIDA chairman suggested a more inclusive and non-discriminatory approach to subsidy rationalisation.
The Foreign Investors’ Chamber of Commerce and Industry (FICCI) and the European Union Chamber of Commerce in Bangladesh (EuroCham) have also expressed concerns over the hike.
EuroCham cautioned that the differential tariff mechanism—based on industrial consumers’ contractual timelines and gas connection status—could inadvertently hurt investor sentiment and industrial growth.
Fibre2Fashion News Desk (DS)
