Gas prices can be reduced, BGMEA calculations show

The government has fixed the new price of gas from February. However, BGMEA believes that it is possible to further reduce gas prices even if all costs are included.

President of the association Farooq Hasan made this comment at a press conference on the law and order situation of the garment industry at the permanent office of BGME in Uttara, Dhaka on Tuesday (February 7).

BGMEA believes that the new price of gas fixed by the government from February to reduce the subsidy pressure can be further reduced even if it is taken as all costs.

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BGME

• Farooq Hasan, president of the association, showed the account and said this in a press conference at the permanent office of BGME in Dhaka's Uttara on Tuesday. The price of gas has been increased by a maximum of 178 percent from this February in an executive order of the government while buying LNG at high prices from the spot market or open market. Where earlier the price of gas was between Tk 10 to Tk 12 per unit, now industrial and commercial customers have to pay Tk 30.

The BGMEA president said that the mixture of domestic gas, LNG gas under long-term contracts from the international market and LNG gas purchased immediately from the open market or spot market is the gas of the national grid. In this case, long-term contract gas prices hover between $12 and $13 per unit. And spot market LNG increased to 70 dollars per unit at one time, but now it has decreased to 17/18 dollars.

International market

• “What we mean by BGMEA is that gas prices were fixed when prices were high earlier. Now the price of spot LNG has come down a lot. As a result, the price that the government has announced now will come down even further.”

The BGMEA president said that the mixture of domestic gas, LNG gas under long-term contracts from the international market and LNG gas purchased immediately from the open market or spot market is the gas of the national grid. In this case, long-term contract gas prices hover between $12 and $13 per unit. And spot market LNG increased to 70 dollars per unit at one time, but now it has decreased to 17/18 dollars.
“What we mean by BGMEA is that gas prices were fixed when prices were high earlier. Now the price of spot LNG has come down a lot. As a result, the price that the government has announced now will come down even further.”