Despite a little bit of raise in the price of piped gas, it still remains at half of the price of cylinder gas being used for cooking.
“This has been a big problem in popularizing LPG (liquefied petroleum gas),” said State Minister for Energy AKM Mosharraf Hossain.
He made the observation while addressing a function arranged to celebrate the first publication anniversary of fortnightly Energy & Power, the country's first and only magazine in the sector. The government raised the price of piped gas with effect from today to synchronise it with international tariff.
With this tariff gap between piped and cylinder gas, the price of LPG cylinder has gone up in the proposed budget for fiscal 2004-05 with imposition of 15 per cent VAT.
However, the State Minister argued that the VAT has been imposed to protect the local LPG cylinder manufacturers.
Due to this big difference between the prices of gas being supplied to the kitchens through pipeline and that of the one sold in cylinders, Mosharraf said everyone wants gas supply to their households.
“It's a big problem, a serious but legitimate pressure on us. They don't want to realise the huge investment required to supply gas to the kitchens,” he said adding, “There is no other alternative to LPG.”
Addressing the function, State Minister for Power Iqbal Hassan Mahmood said the domestic gas connection started during Ayub Khan's regime without judging its economic viability.
“Had cylinder gas been considered at that time, the situation would have been different now,” he added.
Both the ministers elaborated various measures taken to reduce the problem relating to gas and electricity supplies.
FBCCI president Abdul Awal Mintoo told the function that the country should go for optimum use of natural resources for the welfare of the people.
Forum for Energy Reporters Bangladesh (FERB) Chairman Badiul Alam presided over the function, held at CIRDAP auditorium. Energy & Power Editor Mollah Amzad Hossain delivered the welcome address.