DHAKA, Jan. 18 (Xinhua) -- Merely a couple of days after increasing electricity prices, the Bangladeshi government Wednesday hiked gas prices for commercial users in an apparent bid to unlock funding from the IMF or the International Monetary Fund.
The overall rate of increase is from a minimum 14.49 percent to a maximum 178.88 percent.
The gas price for industrial units of all sizes has been set at a flat rate of 30 taka per cubic meter, said a gazette notification issued by the Ministry of Power, Energy and Mineral Resources on Wednesday.
Previously, large industrial units had to pay 11.98 taka, medium units 11.78 taka and small industries 10.78 taka.
For users, such as hotels and restaurants, the price has been raised to 30.50 taka from 26.64 taka per unit.
Gas prices in the country were previously increased in June 2022 by an average of 22.78 percent in a bid to adjust government subsidies.
The new gas prices will be effective from February this year.
However, the price of gas used for household, fertilizer production, CNG-run vehicles and tea gardens will remain unchanged, according to the gazette notification.
The price was hiked following an executive decision of the government.
The Bangladeshi government said last week that it will introduce a new system for adjusting power and energy prices on a monthly basis.
Bangladeshi State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that backlogs made due to financial losses in gas import would be likely overcome to some extent if the price adjustment is made on a monthly basis.
Experts here claimed the markup in the retail gas price would likely push up the nation's inflation rate again.
Inflation in Bangladesh accelerated to 9.52 percent in August last year, the highest in 10 years, mainly driven by higher food prices, the Bangladesh Bureau of Statistics (BBS) has reported.
Price hikes of energy items, fuel oil and gas are reportedly among the major conditions from the Washington-based multilateral lender to reduce the subsidy in the budget.
Visiting IMF Deputy Managing Director Antoinette M Sayeh sought assurance from Bangladeshi Finance Minister AHM Mustafa Kamal that the government would fulfill conditions with the proposed loan of 4.5 billion U.S. dollars.
Bangladesh's overall budgetary subsidy reportedly had doubled in the current financial year from the initially projected 800 billion taka.
The IMF said on Monday it is set to approve a 4.5-billion-U.S. dollar loan later this month to support Bangladesh's reform agenda. (1 U.S. dollar equals about 100 taka). ■