Energy and Mineral Resources Division of Bangladesh continues to tread the bureaucratic path carved by the ousted Awami League government, maintaining a tight grip on fuel pricing authority despite interim government pledges for reform.
Six months into its tenure, the interim administration has yet to implement directives restoring full regulatory powers to the Bangladesh Energy Regulatory Commission (BERC), leaving key fuel pricing regulations suspended.
Under the BERC Act, the commission holds exclusive authority to set energy prices, as stipulated in Section 34(3), which mandates the formulation of regulatory guidelines.
However, successive administrations have exploited legal loopholes, delaying these regulations and resorting to executive orders to control fuel prices.
This practice, entrenched for over a decade, has raised serious questions about the government’s commitment to transparent governance.
Former BERC member Mokbul-e-Elahi Chowdhury expressed dismay over the prolonged delay, remarking, "It is astonishing that even after six months, the regulations remain unapproved. Strengthening BERC would be the most significant reform, curbing corruption and irregularities automatically."
Established in 2003 to function as an impartial, quasi-judicial entity, BERC formally commenced operations in 2009.
Since then, it has drafted 13 regulations, with another 12 languishing in bureaucratic limbo for over a decade.
Although BERC was initially responsible for setting prices across all energy sectors, it has been restricted to gas and electricity pricing due to the absence of comprehensive fuel pricing regulations.
A 2023 legal amendment further diminished its role, empowering the government to adjust gas and electricity prices through executive orders, effectively sidelining the commission.
While the interim government swiftly revoked the executive order-based pricing model for gas and electricity through a gazette notification on 27 August, returning authority to BERC, fuel pricing remains under direct government control.
Energy and Mineral Resources Division recently adjusted diesel, petrol, and octane prices without regulatory oversight, perpetuating the opaque pricing mechanism of the previous regime.
CAB's Energy Adviser Dr M Shamsul Alam voiced concerns about the government's ambiguous stance on BERC’s authority.
"We aspire to see a robust and effective BERC. The government's current position appears indistinguishable from its predecessor’s. If necessary, we will pursue legal avenues, as we did with LPG pricing," he stated.
BERC Chairman Jalal Ahmed confirmed that the draft regulations had been pending with the ministry prior to his appointment.
"We have consolidated three separate draft regulations on fuel distribution, transmission, and retail into a single proposal, which is under active consideration," he noted.
Addressing concerns over potential price hikes, he assured that the BERC Act allows for subsidies to mitigate consumer impact.
Former BERC administrative member Mohammad Abu Faruq highlighted that empowering BERC would halve the reform needs in the energy sector, significantly curbing corruption.
"In countries like India, regulatory commission approval is mandatory for energy contracts, ensuring necessity and cost-effectiveness. Implementing similar measures could save Bangladesh billions at the macroeconomic level," he asserted.
Experts argue that the Bangladesh Petroleum Corporation (BPC) faces a conflict of interest, simultaneously importing, marketing, and setting fuel prices, thereby undermining consumer interests.
"BPC must either regulate or market fuel—not both. The current model is legally untenable," they warned.
Energy and Mineral Resources Division Secretary Mohammad Saiful Islam acknowledged ongoing work on the regulations, expressing optimism about their imminent finalisation.
Yet, the delay has cast a shadow over the interim government's reformist credentials, with critics questioning its resolve to break free from the entrenched bureaucratic legacy.
