Business Anxiety: Gas Price Hike Impacting Entrepreneurs
In Dhaka, the industrial sector seems to be facing unending challenges. Business owners are struggling due to a prolonged dollar crisis, high-interest rates, and worker dissatisfaction. Past experiences show that industrialists are enduring tough times compared to any other time.
Impact on Industrialists
Industrialists have been complaining for a long time that despite paying higher prices, they are not receiving uninterrupted gas supply in their factories. In this situation, the decision to increase gas prices further has left entrepreneurs in distress and anxiety. Many are considering closing down their businesses, with some suggesting that trading is a better option than setting up industries. Experts believe that newcomers in the industry may face challenges in penetrating the market with such high gas prices.
Challenges for Entrepreneurs
Entrepreneurs claim that the proposed increase in gas prices is substantial. As a result, the pressure of price inflation will only escalate. The question of whether new entrepreneurs can survive in the market with the proposed gas price hike remains unanswered. This poses a significant challenge for newcomers as existing industries that use excess gas will also face increased costs. The decision to raise gas prices will undoubtedly impact the industry significantly.
Expert Insights
Dr. Jahid Hossen, the Chief Economist at the World Bank’s Dhaka office, points out that the proposed increase in gas prices for industries is considerable. The gas-dependent new industrialists are likely to face hurdles. The existing businesses that will use extra gas will also have to pay more. The gas price hike will undoubtedly create a vast disparity in the market. Previously, in an executive order on January 18, 2023, gas prices were tripled. The move resulted in a significant increase in gas prices for large industries to Tk. 11.98 per unit and for small industries to Tk. 10.78 per unit. The decision to increase the gas price to Tk. 30 per unit for large industries and Tk. 30.75 per unit for small industries from February 2024 onwards.
Industrialists and entrepreneurs are eagerly awaiting a decision on the proposed gas price hike. The technical committees with distribution companies will hold discussions and hearings before making a final decision. With Petrobangla expressing concerns about the gas price hike, many allegations of gas leakage and illegal connections have been made against the company. These issues necessitate accountability from the company.
Conclusion
The proposed increase in gas prices for industries is a matter of concern for entrepreneurs, industrialists, and experts alike. The potential impact on businesses, especially new entrants, raises questions about the future of the industrial sector. As the industry continues to navigate through these challenges, the decision on gas prices will play a pivotal role in shaping its trajectory.
