HC stays second phase of gas price hike

The High Court on Tuesday stayed the second phase of gas price hike, scheduled to come into effect from June 1, for six months. 
The bench of Justice Moyeenul Islam Chowdhury and Justice JBM Hassan also asked the Bangladesh Energy Regulatory Commission chairman and secretary to explain in four weeks the legality of the notification hiking gas prices in two phases.
The court passed the order after hearing a writ petition filed by architect Mubasshar Hussain on behalf of Consumer Association of Bangladesh.
The petition and the court order came amid protests from political parties and citizens’ platforms against the price hike of gas, the first phase of which came into effect today.
Left political parties observed a half-day strike in Dhaka on Tuesday protesting at the gas price hike.
Moving the petition, petitioner’s counsel argued that the commission increased the prices of gas in two phases in violation of Section 34(5) of the Bangladesh Energy Regulatory Commission Act 2003.
Section 34(5) of the act stipulates that the tariff set by the commission will not be revised more than once in a fiscal year unless there is any change in the prices
of energy or any other changes.
He also argued that the commission made the decision breaching Section 34(6) of the act.
Section 34(6) says that a licensee may submit to the commission proposals along with detailed information for revision of tariff and the commission after hearing the intending parties may publish notification containing its decision within 90 days of receiving the proposal along with all information for tariff revision and will instruct the licensee to publish the relevant information.
Saiful contended that the commission held public hearing on August 18, 2016 and announced the price hike on February 23, 2017.
According to the notification issued by the commission on February 23, prices of kitchen gas will be increased to Tk 750 from Tk 600 for a single burner and Tk 800 from Tk 650 for double burners for a month from today.
The commission also announced that gas prices would be increased again to Tk 900 for single burners and Tk 950 for double burners from June 1.
According to the notification, the price of compressed natural gas for vehicles would be increased to Tk 38 per cubic metre from today and to Tk 40 from June 1.
The commission also increased the prices of gas for producing power and fertilisers and for use in industries and commercial sectors by 5 per cent to 50 per cent in two phases.

News Courtesy: www.cnn.com