The Bangladesh Energy Regulatory Commission’s recent 33% gas price hike for new industrial users and captive power plants places significant pressure on the manufacturing sector. Business Initiative Leading Development (BUILD) has raised concerns about the timing of this gas hike, as businesses already face rising raw material costs, a weakening currency, export market volatility, and energy shortages.
The hike could lead to a 12.67% inflation spike, with industrial product prices expected to increase from BDT 8.23 trillion to BDT 9.28 trillion. BUILD calls for immediate relief through value-added tax (VAT), tax exemptions for the industrial and power sectors, and the use of the Energy Security Fund to stabilise gas prices.
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