DHAKA (Reuters) – The state-run Bangladesh Energy Regulatory Commission (BERC) on Sunday raised natural gas prices by 32.8% on average for all users effective from July 1, the first day of country’s fiscal year, the head of the Commission said.

“The price has been hiked only to adjust the huge losses of state-run Petrobangla,” said Monwar Islam, the chairman of the Commission.

Petrobangla is incurring losses of about $235 million a month as it currently imports liquefied natural gas from the international market and sells it onto the domestic market at a loss, an official said.

BERC last raised natural gas prices by 11% in 2017.

Business leaders said with this price hike the industry will lose its competitiveness in the international market.

“This huge price hike is a stops us boosting our output and also it will give us strong competition in the international market,” said Anwarul Alam Chowdhury, the President of the Bangladesh Chambers of Industry.