The government yesterday hiked the gas price by 22.8 percent, compounding the woes of the ordinary citizens who are already grappling with the spiralling prices of almost all essentials.

As per the new tariffs announced by the Bangladesh Energy Regulatory Commission (BERC), the use of a single burner will cost Tk 65 more at Tk 990 and a double-burner Tk 105 more at Tk 1,080.

Of the 43 lakh household gas connections, about four lakh have pre-paid meters and the tariff for those will increase 42.9 percent to Tk 18 per cubic meter.

The gas price was last hiked in July 2019.

Fertiliser factories have been slapped with the steepest hike: they will now have to pay Tk 16 per cubic meter of gas instead of Tk 4.45.

Asked about the hike, which can add to the inflationary pressure, Mohammad Abu Faruque, the acting chairman of BERC, said: "The government has already decided not to give subsidies for any product at the production level. It would be extended at the consumers' end."

The small and cottage industry users, however, will pay Tk 6.26 less at Tk 10.78 per cubic meter of gas.

The price for compressed natural gas (CNG) was not hiked: consumers will continue to pay Tk 43 per cubic meter of gas.

"We saw earlier that if the CNG price is hiked, the transport sectors cash in on it. We want to keep this sector stable now as the people are already suffering."

For captive power plants, the hike in tariff will be 15.5 percent, which is higher than the rate recommended by BERC's technical evaluation committee.

Earlier, in March, the committee recommended an 11.9 percent hike for the sector.

Probed, Faruque said: "The committee didn't count some expenditure in their calculation but we found those logical."

The gas tariff for power plants has been increased by 12.8 percent, for large-scale industries by 11.96 percent, for medium-scale industries by 10.09 percent, for tea estates by 11.5 percent and commercial users like hotels and restaurants by 15.83 percent.

In his immediate reaction, Jashim Uddin, the president of the Federation of Bangladesh Chambers of Commerce and Industries, thanked Prime Minister Sheikh Hasina for keeping the gas prices "rational" amid the global turmoil caused by the Ukraine-Russia War and the rising trend of LNG price.

Consumers' rights activists and some political parties had given alternatives to raising the price.

"BERC didn't accept any of our recommendations," said Shamsul Alam, vice-president of the Consumers Association of Bangladesh.

The country is already in an unstable situation due to the price hike of commodities, inflation and devaluation of the exchange rate.

"People are gasping. At this time, the government could increase their subsidy in the energy sector instead of increasing the price."

The new tariff will have a far-reaching effect: gas is a strategic product, so every sector will be affected, he added.

Earlier in January, all six gas distribution companies -- Titas, Bakhrabad, Jalalabad, Pashchimanchal, Karnaphuli, and Sundarban -- had asked the BERC for an average of 117 percent hike in tariffs.

The state-owned Bangladesh Oil, Gas, and Mineral Corporation (Petrobangla) also placed a separate proposal asking to increase the bulk price of natural gas.

BERC held a public hearing on the proposals from March 21 to 24, where its technical evaluation committee had recommended a 20 percent price hike on average.