Proposal for hiking gas prices illogical: BTMA

The Bangladesh Textiles Mills Association (BTMA) has urged the government to withdraw the recent proposal for increasing the price of gas.

Terming the proposal illogical, the BTMA yesterday said it recently came to know that the finance ministry has sent a proposal to senior government officials to increase the per cubic meter gas tariff by Tk 28.

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But while proposing the new gas price, it was not considered whether the textile mills will be able to cope with the price.

The textile millers will be hit hard if the production costs increase further, it said in a statement.

The association said it spends about $5.2 to $5.5 at present to produce 30-carded yarn while the neighbouring country exports it at $4.4 to $4.75.

If the proposed price is implemented; the price of locally produced yarn will increase by 20-25 per cent.

As a result, the illegal import of yarn will increase and more dollars will be spent and the foreign reserve will decline, it added.

"We also think that this kind of illogical decision will slowly destroy the backward linkage industry of the primary textile sector, which will make Bangladesh more dependent on other countries for yarn and fabric."

Recently, several gas distribution companies proposed that the Bangladesh Energy Regulatory Commission increase prices by as much as 117 per cent following a government directive to reduce dependence on subsidies.