The Bangladesh Energy Regulatory Commission (BERC) is set to hold a public hearing today on the proposals to increase gas prices for industrial users, according to a notice from the commission.

The hearing will take place at the capital's BIAM auditorium from 10:00am to 5:00pm.

According to the proposals from the distribution companies and Petrobangla, gas prices for new industrial and captive power users will be determined based on the actual cost of LNG imports.

Industries exceeding their sanctioned load will be charged according to the same method.

Currently, they pay a flat rate of Tk 30.75 per cubic metre of gas used. If they exceed their sanctioned load, they are still charged the same rate. Under the new proposal, these industries will be charged Tk 75.72 per cubic metre for any gas usage exceeding the sanctioned load.

In addition, new industrial and captive connections will have to pay Tk 75.72 per cubic metre consistently. Instead of a fixed rate, the new pricing structure will be based on the actual cost of imported liquefied natural gas (LNG).

According to the proposal, those who have received primary approval for new connections will have to pay 50 percent of their bills at the existing rate for their sanctioned load, and the rest at the new rate.

Under the proposed policy, the gas price will be determined by the cost of LNG imports, calculated based on the average expenditure of the previous three months' total costs. This will include operational, transmission, and distribution charges, as well as contributions to the gas development, energy security, and research funds. A 15 percent VAT will also be imposed.

Between July and September 2024, Petrobangla imported a total of 1,726 million cubic meters of LNG for Tk 10,979 crore. The per cubic meter cost of LNG during that period was Tk 63.58, and after including all additional charges, the final cost per unit reached Tk 75.72.

Meanwhile, the Consumer Association of Bangladesh (CAB) has protested the hearing. They plan to hold a human chain in front of the venue before the event.