The 33 per cent hike in gas prices for industrial use has sparked strong criticism from manufacturing leaders, who warned it would deter new investment, hurt competitiveness and hinder employment generation.

Industry representatives argued the move is ill-timed, coming amid high bank rates and falling incentives, and said it contradicts efforts to attract foreign investment.

Bangladesh Energy Regulatory Commission (BERC) on Sunday raised gas prices by 33 per cent for both industrial and captive power connections, with immediate effect.

According to a statement issued by the BERC, the price for new industrial connections has been increased to Tk 40 per cubic metre from Tk 30.

Similarly, new captive users—industries generating their own power—will now pay Tk 42 per cubic metre, up from Tk 31.5.

Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), described the increase as ‘unacceptable under any circumstances,’ calling instead for the rate to be reduced to around Tk 20 per cubic metre.

‘BPC, Titas and similar agencies are operating with a profit-first mindset, but their activities are benefiting neither consumers nor industries,’ he said.

Referring to the recently concluded investment summit in Dhaka, Russell argued that reliable and affordable energy was vital to attracting foreign investment.

‘But how can we expect investors to come when we are raising gas prices yet again?’ he asked.

He also said that if the government could recover laundered money, it could more effectively address the ongoing energy crisis.

Echoing these concerns, Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that the timing of the hike was particularly problematic, given that industries were already struggling with rising bank interest rates and increased US tariffs.

He warned that the price increase would significantly impact industrial investment and called on the government to reconsider the decision.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), also criticised the move.

‘We just held an investment summit. Hiking gas prices while promoting investment is contradictory,’ he said, warning that the hike would reduce investors’ confidence.

Moynul Islam, president of the Bangladesh Ceramic Manufacturers and Exporters Association, said that the ceramic industry is highly gas-intensive and requires uninterrupted gas supply similar to KAFCO, EPZs and Economic Zones.

He said the price hike would lead to a rise in loan defaults and further discourage gas-based industrial development.

‘With increased bank rates and reduced incentives, this hike will only worsen the investment climate,’ he added.

Md Shahriar, president of the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association, said the new gas pricing structure would create unfair competition between old and new investors.

‘Many of us had plans to invest, but we are now being forced to reconsider,’ he said.

Earlier, BERC had proposed a 150 per cent hike in gas prices, which was widely opposed during public hearings.

However, the commission implemented a 33 per cent increase without offering any detailed explanation.