The Bangladesh Chamber of Industries (BCI) has criticized the Bangladesh Energy Regulatory Commission’s (BERC) proposal to set gas tariffs based solely on LNG import prices, arguing that it is unconstitutional, unfair, and harmful to industries. The BCI pointed out that the previous gas price hikes had already increased energy costs from 5-6% to 10-15% of total production costs. For example, fabric production costs rose from Tk 18 per yard in 2022 to Tk 26 in 2023. Additionally, yarn production costs per kg increased to $2.45, compared to $2.18 for imported fabric. Due to these rising costs, knitwear imports grew by 39% in 2024. The BCI reported a 30-40% drop in industrial production, contributing to a decline in industry’s GDP share from 8.37% in FY 2022-23 to 3.57% in FY 2023-24. The BCI urged for a reduction in gas prices and better efficiency in the distribution system to mitigate further industrial setbacks.
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