Tariff on gas pricing jeopardises investor confidence: BIDA

Bangladesh Investment Development Authority has warned that the newly revised gas tariffs could deter foreign investment by imposing disproportionately higher costs on new investors

Staff Correspondent

Publisted at 1:11 PM, Wed Apr 16th, 2025

The Bangladesh Investment Development Authority (BIDA) has called for an urgent revision of the recently announced gas tariff, warning that the hike disproportionately penalises new investors and could undermine the country’s investment climate.

In a letter sent to the Bangladesh Energy Regulatory Commission (BERC) on 15 April, BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun criticised the pricing structure, which imposes a 33% higher rate on new entrants compared to existing consumers.

“This discriminatory policy will discourage new investments,” he cautioned, adding that investors are already viewing the move as unjust and have begun expressing their disapproval.

The BERC unveiled the revised gas tariff on 13 April.

While BIDA reaffirmed its support for the government’s efforts to phase out subsidies, it stressed that such measures must be introduced transparently and with clear public communication to prevent confusion and erosion of trust.

The letter also highlighted the ill-timed nature of the announcement, which followed shortly after the Bangladesh Investment Summit 2025 — an event hosted by BIDA from 7 to 10 April that attracted around 450 investors and business leaders from 40 countries.

“Several investors signed MoUs and agreements during the summit. The announcement of a discriminatory gas price hike right after the event will undoubtedly create negative sentiment among them,” Chowdhury Ashik noted.

He urged BERC to reconsider the decision and adopt a more investment-friendly pricing model. He also proposed convening a workshop to review the potential impact of the revised tariff on investor sentiment and economic growth.

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