InvestmentNewsRaw Materials

BIDA criticizes gas tariff hike, warns of impact on investment climate

BTJ News Desk
SHARE
BIDA criticizes gas tariff hike, warns of impact on investment climate

Recently revised gas tariff unfairly penalizes new investors by requiring them to pay 33% more than existing industrial users, said Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of the Bangladesh Investment Development Authority (BIDA).

In a letter to the Bangladesh Energy Regulatory Commission (BERC) dated April 15, BIDA urged a reconsideration of the new pricing structure, warning that the move could damage Bangladesh’s investment appeal and slow economic momentum.

“This discriminatory policy will discourage new investments,” Chowdhury wrote. “Investors are already viewing the decision as unfair and are voicing their opposition.”

While BIDA supports the government’s broader goal of reducing energy subsidies, the agency stressed that such decisions must be implemented with transparency and sensitivity to investor sentiment.

The timing of the tariff announcement has also raised concerns. BIDA noted that the decision came just days after the Bangladesh Investment Summit 2025, which the agency organized. The summit attracted around 450 investors and business leaders from 40 countries, many of whom signed MoU and expressed strong interest in investing in Bangladesh.

“The announcement of a discriminatory gas price hike so soon after the summit is likely to generate negative sentiment among potential investors,” Chowdhury said, calling on BERC to adopt a more investment-friendly pricing model. He also proposed a stakeholder workshop to conduct a comprehensive review and impact assessment of the revised tariff.

BIDA’s statement follows similar concerns raised by international business groups, including the Foreign Investors’ Chamber of Commerce and Industry (FICCI) and the European Union Chamber of Commerce in Bangladesh (EuroCham), who have questioned the timing and fairness of the new gas pricing policy.

SHARE

Comment here