The Foreign Investors’ Chamber of Commerce and Industry (FICCI) has raised concern over the recent gas price increase announced by the Bangladesh Energy Regulatory Commission (BERC), warning that the revised tariff structure may deter industrial growth and foreign investment.

Earlier this week, the government introduced a 33 percent tariff hike for new industrial gas connections. Under the revised policy, businesses classified as new customers—including those with new gas sales agreements (GSAs), increased demand, or expanded capacity—will pay significantly higher rates than existing customers within the same industrial category.

Existing industries that exceed their sanctioned gas load will also face an elevated rate of excess usage.

In a statement released on Tuesday, FICCI criticized the tiered pricing mechanism, saying it undermines fair competition. “This differentiated pricing model presents several challenges. It introduces inequity in energy costs across similar operations, undermines the principle of a level playing field, and could adversely affect Bangladesh’s industrial competitiveness at a time when investment momentum is building,” said the chamber.

FICCI, representing investors from 35 countries and 21 sectors, cautioned that the new tariff could discourage both foreign and domestic investments. The concerns come just weeks after Bangladesh hosted a major investment summit, which attracted participants from nearly 50 countries.

FICCI also flagged ambiguities in the treatment of new GSAs, noting that applying new-connection tariffs to long-standing industrial users could lead to confusion and operational uncertainty. It urged BERC to revise the framework in line with the country’s broader goals for economic development and investor engagement.