Gas and power tariffs rise reason not clear 

The Bangladesh Energy Regulatory Commission (Berc) has increased power and gas price at a time when the public gas companies are making large profits and per unit power generation cost has gone down to a certain degree.

In the meantime, due to falling price of petroleum in the international market—the Bangladesh Petroleum Corporation (BPC) is set to make a staggering profit exceeding around Tk 16 thousand crore (US $2 billion) this year.

The government is not reducing the price of petroleum product to help the BPC recover its accumulated loss of Tk 5000 crore over the last few years.

Experts say that while the only justification of price hike was adjusting inflation rates, the Berc did not take into consideration the whole profit and loss situation in the energy sector.

The power sector losses are rising because it is buying petroleum from BPC at almost double the rate of the private power generating companies.

But a look at overall energy sector shows that the government is staying profitable in this area.

Titas Gas Transmission and Distribution Company Ltd (TGTDCL) has made close to Tk 1000 crore profit in the last fiscal year said a top official of the company.

Titas provides a major portion of the gas to domestic, commercial, and industrial users and bulk users like power and fertiliser companies in the country.

A competent source in the Power Development Board (PDB) said that the power generation cost, including financial charge now stands at Tk 6.32 per unit—which is 20 paisa less than that of last year's cost.

The Berc's increase of average power tariff by almost 3 percent will annually bring in an extra income of Tk 1200 to Tk 1300 crore to PDB. But it will not be enough to cover its overall loss.

The PDB would still need around.