Plastic goods makers, exporters want gas prices to remain at Tk30 per unit

Plastic goods manufacturers and exporters have called on the government to maintain the current gas price of Tk30 per unit in the interest of industrialisation and investment in the country.  

"The government should reconsider its move to raise gas prices," said Samim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), during a press conference in the capital on Sunday (12 January).  

"A rise in gas prices will lead to higher production costs, which will further fuel inflation, making it uncontrollable," he added.  

Petrobangla – the Bangladesh Oil, Gas, and Mineral Corporation – earlier this month submitted a proposal to the Bangladesh Energy Regulatory Commission to more than double the per-unit price of gas for industrial and captive consumers, from Tk30 and Tk31.50 to Tk75.72.  

The move aims to reduce the government's subsidy burden on gas production costs.  

During the press conference, BPGMEA presented several proposals regarding gas and liquefied natural gas (LNG), including investing further in drilling new gas wells and taking practical steps.  

The association also proposed that customs duties and taxes on LNG imports be removed to resolve the crisis. It further suggested constructing a new LNG terminal to increase imports and holding detailed discussions with stakeholders to adopt practical measures.

The association protests banning single use plastic

During the press conference, BPGMEA leaders protested the government's move to ban single-use plastic.

"Efforts by the ministry to ban all single-use plastic will severely affect the plastic sector's trade and the economic activities of related sectors," said Samim Ahmed.

"This move is creating obstacles to industry development and could lead to negative market reactions," he added.

The association stated that the environment ministry banned plastic shopping bags in 2002 through a notification aimed at cleaning up the country's environment.

"As a result, 300 large plastic shopping bag manufacturers, members of BPGMEA, were forced to close their factories, leading to the loss of investments worth hundreds of crores and unemployment for workers," said the association president.

He said the plastic sector was severely affected, but the intended environmental benefits of the plastic shopping bag ban have not materialised.

"The goal of the ban has not been achieved in the past 22 years. It has not been possible to produce and supply affordable, quality, and easy-to-use alternatives to shopping bags," he pointed out. 

He said banning products is not the solution. "We also want to improve the environment, but the environment ministry's approach to banning products is not correct or scientifically sound."

The 17 items listed in the current single-use plastic notification will make it impossible for the industry to operate.

"If plastic packaging is banned, sectors such as food processing, pharmaceuticals, hospital equipment, agriculture modernisation, and export packaging will all be affected, leading to a negative impact on exports," he continued. 

He expressed concern that banning single-use plastic could damage the investments of 6,000 industrial companies in the plastic sector and lead to the loss of jobs for millions of workers.

Some items on the single-use plastic list support the livelihoods of 13 lakh small vendors, and the sector contributes an estimated Tk40,000 crore annually to the government exchequer, he added.

The association has given several suggestions for the proper use of single-use plastic. Among them is converting waste into resources through plastic recycling. 

The proposal also suggested that the economic impact be assessed through discussions with the ministries of commerce and industries, the Bangladesh Investment Development Authority, the Federation of Bangladesh Chambers of Commerce and Industry, and other relevant organisations.

As the phase-out of single-use plastic is planned for 2030, the proposal emphasised that steps should be taken to implement this plan accordingly.