Dhaka Chamber of Commerce and Industry (DCCI)on Monday expressed deep concern over the recent tariff hike of gas
and electricity and urged the government to rationalise the decision taken to facilitate the industrial, trade and economic growth in Bangladesh.
“DCCI thinks this price hike will have manifold impacts on businesses,” the trade body said in a statement.
The decision of tariff rise is going to further discourage the existing slow pace of FDI (Foreign Direct Investment) inflow to
Bangladesh in the days to come as utility crisis has always been marked a serious concern by prospective foreign investors, it observed.
Textile and RMG industries as well as business growth will be immensely restrained and challenged, being the largest user of captive power. The industry and business will be affected badly as it will increase the cost of doing businesses which may affect the country’s export, it said.
The DCCI said the tariff change is expected to have also multiplier adverse effects on the economy of Bangladesh may push the inflation into double digit with other threats to the economy.
“The price of LPG is already at the high level despite its price is much lower on the international market. DCCI thinks it will add sufferings to the poor and middle-income people as the price hike will fuel the cost of living, too.”
The DCCI thinks the price hike is not commensurate and rational enough until sufficient improvement of gas and energy supply to meet growing and diverse need of the industry, trade and other economic activities. “Moreover, this price hike of energy and power will be added to recently increased trade license fee to a great extent.”
The tariff change should have been rational and justified taking into account the real wage, socioeconomic condition of the mass people above all rapid and ambitious industrial, trade and economic growth prospective which in line with the materialization of the government vision of 2021 and vision of DCCI to make Bangladesh the 30thlargest economy by 2030.
Considering the long range impact on the economy, DCCI therefore urged the government to reconsider the decision of price hike of gas and electricity.