Top spinners in Bangladeshi have urged the government not to increase gas price in phases in one go but to phases it out as the sector is facing challenges due to the import of cheaper yarn and fabrics from India and China. A proposed 130 per cent hike in gas prices for captive power plants which the spinners use for continued power generation, will badly hurt the sector, they say. The hike will push up the price of gas from Tk 8.36 to Tk 19.26 per cubic metre.
They feel the proposed hike is abnormally high and will be difficult for spinners to absorb price shocks in the current volatile situation. It may be recalled the government had already raised the price of gas for captive power plants from Tk 4.36 per cubic metre to the current rate last September. Bangladesh Energy Regulatory Commission will hold a public hearing on the gas price hike proposed by Titas Gas Transmission and Distribution Company Ltd on August 7 and 8.
