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Rising gas-energy prices negatively impacting industrial sector

Industry: Energy & Power, Power
Industry Intelligence Tag: Industry insights

Entrepreneurs and economists worry that the excessive increase in gas and energy prices would have a negative impact on the industrial sector. They believe that the government is unable to provide constant electricity. On the other hand, the price is rising at an intolerable rate every day. The Ministry of Power, Energy, and Mineral Resources announced an increase in the cost of power. This extended price has been executed on February 1. The increased gas price is also anticipated to go into effect in the period. On January 18, gas prices increased by 82 percent.

Electricity costs for homes and businesses are rising by at least 5%. Additionally, electricity rates are rising by at least 8% for wholesale distribution businesses. Businessmen claim that because of the enormous increase in gas prices in the industrial sector, it will be challenging to maintain the companies’ operations. Fuel imports are almost entirely necessary for the industry. In the meantime, the nation is experiencing a monetary crisis. It has led to differences in how import and export dollar prices are calculated. In this case, industrialists have called for a new pricing determination, including FBCCI. It is suggested that the captive price rise not exceed 57 percent.The garment industry is currently dealing with a number of difficulties. This industry is currently under strain from a lack of raw resources, rising fuel prices, etc. The difficulties facing the garment sector would worsen if gas and electricity prices rise gradually. In this situation, the cost of production will increase by 40 percent as a result of the increase in the price of gas and electricity of the industry. If business owners purchase LNG on the spot market to ensure an uninterrupted supply of gas for the industry, industrialists advocated raising the price by 20 to 25 percent. However, even if LNG does not arrive, the price of gas has now soared by 179 percent. In the meantime, 207 factories were shut down in the previous year.

 

 

 

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Kalerkantho

 

 

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