The price hike on electricity would be effective from February, said State Minister for Power, Energy and Mineral Resources Nasrul Hamid MP.
“Now the average production cost of electricity is Tk12, and it is being sold at Tk7. Around Tk43,000 crore would have to be given as a subsidy on electricity this year. Adjustments will be made gradually over several years. Electricity prices for low-consumption customers will increase less and higher on the upside. We are monitoring,” he said while talking to reporters at the secretariat on Thursday (29 February).
“The biggest problem has been due to the increase in the price of the dollar. Although the international market price of oil-gas and coal remains the same, it is costing us Tk40 per dollar more than before. We are working to coordinate with the dollar,” he added.
A modern pricing system is being adapted for fuels, the state minister said.
“Indexes and formulas are adjusted monthly with international markets, and neighbouring countries adjust daily. If it gets excessive, the government manages in other ways,” he said.
Regarding the increase in gas prices, he said that the average price is above Tk24. Fertiliser is being given at the rate of Tk16, electricity at Tk14. The prices will be adjusted within the next 3 years.
Earlier on 27 February, Nasrul Hamid had said the government is set to raise electricity prices by Tko.34 to Tk0.70 per unit and the new rate will come into effect from the first week of March.
"The price adjustment was aimed at balancing the cost of electricity production," he said during a media interaction this morning at the secretariat in Dhaka.