The Consumers Association of Bangladesh (CAB) has rejected the Bangladesh Energy Regulatory Commission’s (BERC) call for a public hearing on the proposal to raise gas prices for fertilizer factories.

In a press statement issued on Tuesday, the consumer rights body said it would not participate in the hearing, citing the lack of action on complaints it lodged with the President against BERC’s irregularities more than a month and a half ago.

Terming the proposed hike in gas and fuel prices for fertilizer plants “unjustified,” CAB said BERC had earlier increased the charge rate of jet fuel sold by Padma Oil Company without any logical ground. Similarly, the plan to increase gas prices for new and expanded industrial units contradicts the principle of energy justice, it added.

CAB further demanded the removal of BERC’s chairman and other members, accusing them of abuse of power and violation of law. The association submitted a written complaint to the President on July 31, but with no resolution forthcoming, BERC has gone ahead to call another public hearing on October 6 with the same members in office.

Until the chairman and other law violators are removed, CAB will not attend any public hearings called by BERC, the statement read.

On August 10, Petrobangla submitted a proposal to raise gas prices for fertilizer factories, followed by separate submissions from six distribution companies.

According to the proposal, the average cost of gas supply stands at Tk 28.78 per cubic meter, while it is currently being sold at Tk 22.93, resulting in a loss of Tk 5.85 per cubic meter. This could create a deficit of Tk 12,291 crore in the current fiscal year. Although the government has allocated Tk 6,000 crore in subsidies, the companies said increasing the fertilizer gas price would help reduce the shortfall.

At present, fertilizer plants pay Tk 16 per cubic meter for gas. If the rate is raised to Tk 40, the distributors expect an additional revenue of around Tk 4,343 crore, according to their submission.

Following the proposal, BERC issued a public hearing notice on September 11, allowing stakeholders until September 28 to register for participation. With Tuesday’s announcement, CAB has made its stance clear against the upcoming hearing.