Dhaka: The High Court on Sunday declared government’s decision of raising the gas price in second phase illegal.

The apex court issued a rule asking as to why the gas price hike for the second phase is not illegal on 28 February 2017.

A HC-bench comprising Jutice Jinat Ara and Justice Kazi Mohammad Izarul Haque Akand issued the verdict after concluding the hearing on the rule.

On 27 February, Consumer Association of Bangladesh (CAB) filed a writ with High Court challenging BERC’s decision of raising gas price twice in a year.

Earlier, on 23 February, as per the decision of Bangladesh Energy Regulatory Commission (BERC) gas prices have been raised for all types of consumers which will come into effect in two phases.

In the first phase to be effective from March 1, household consumers will have to pay Tk 750 for single burner stove while Tk 800 for double burner stoves in a month.

At present, the gas price is Tk 600 for single burner and Tk 650 for double burner.

The same consumers will have to pay Tk 900 and Tk 950 for single and double burners respectively from June 1.

Similarly, the motor vehicle owners using CNG will have to pay Tk 38 for per cubic metre from March 1 and Tk 40 from June 1 this year.

The gas prices for other sectors, including power, fertilise, industries, commercial ventures and captive power plants, were also raised.

The country’s energy regulatory body increased the price of natural gas by 22.70 percent for all types of consumers.

The BERC announced the new tariff after six months of holding public hearing on proposals from state-run gas marketing, transmission and distribution companies.

It also raised the distribution margins of Sundarbon Gas Company Ltd and Pashchimanchol Gas Company Ltd but rejected the plea for raising the similar margin for Titas Gas Marketing and Distribution Company Ltd.

The tariff for natural gas for power plants will be Tk 2.99 per cubic metre from March 1 and Tk 3.16 from June 1. The existing tariff for power plants is Tk 2.82 per cubic metre.

Gas tariff for captive power plants has been increased to Tk 8.98 per cubic meter from March 1 and Tk 9.62 per cubic meter from June 1 from the current tariff of Tk 8.36 per cubic meter.

For fertiliser factories, the new tariff of Tk 2.64 per cubic metre will be effective from March 1 and Tk 2.71 per cubic metre from June. The present natural gas tariff for fertiliser factories is Tk 2.58 per cubic metre.

For industrial consumers, the new gas tariff will be Tk 7.24 per cubic metre from March 1 while Tk 7.76 per cubic metre from June 1 from existing Tk 6.74.