The technical committee of the energy regulator has recommended cancellation of the distribution margin of Titas gas. The committee of the Bangladesh Energy Regulatory Commission (BERC) has recommended increasing the monthly bill of natural gas in the residential sector to Tk1,080 for two stoves and Tk990 for one stove – a 20% increase than the current price.

The regulator held a public hearing on the proposed gas price of Titas Gas Transmission and Distribution Company at Biam Auditorium in Dhaka on Wednesday, and made the recommendation.

On the other hand, Titas has proposed an average increase of 117% in gas prices like other distribution companies. Besides, they have requested to increase the gas distribution charge from Tk0.25-0.68.

However, the technical committee says Titas has more revenue in addition to the distribution margin. It has earned an additional income of Tk10,147 million. Titas, on the other hand, said that as of August 31, 2015, their distribution margin was Tk0.55. On September 1 of that year, it was reduced to Tk0.22.

Since then, the National Board of Revenue (NBR) had cut off additional taxes, leaving the government-owned gas company with negative capital. Apparently, they approached the NBR for a refund of Tk1,003 crore. But the NBR did not pay any heed. According to Titas, they have four development projects underway for which they need to increase their margins to finance.

Harunur Rashid Mollah, managing director of Titas, said: “The projects are running with security money. Titas has about 2.8 million subscribers but not every customer pays the bill. On the other hand, nearly Tk316 crore is stuck due to arrears bills. Meanwhile, Titas has no money as the margin is low. We need funds to run the projects.”

Meanwhile, at the beginning of the hearing, BERC Chairman Abdul Jalil said: "In the current world situation, middle-income people are also struggling. The product we are discussing has a chain effect, but the distribution company looked into the other side of the matter. We will make the decision considering the overall social situation.”