The last time the price of gas was increased in November 2008. After coming to power in 2009, the Awami League-led government only increased the price of compressed natural gas (CNG) several times
The energy regulator may announce increased prices of electricity and gas today, or next week, but the decision to adjust fuel oil prices with falling global trends is still pending.
The bulk price of electricity is being raised after three years, retail price after one year and that of gas after seven years.
The Bangladesh Energy Regulatory Commission (BERC) will issue a notification announcing an average 5.5% rise in bulk and 4.5% rise in retail prices of electricity. The notification will also announce Tk400-450 rise in the price of using single and double gas burners. All these hikes will come into effect on September 1.
The announcements are likely to be made in a press briefing at the BERC office. However, the announcement for slicing fuel oil prices might be made through executive orders at a later time.
After six months of public hearing, the energy regulator is going to announce the revised tariffs following a meeting with prime minister’s energy adviser Tawfiq-e-Elahi Chowdhury yesterday where they discussed fixing the tariffs on fuel oil, power and gas at the bulk and consumer levels and transmission charges.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid; BERC Chairman AR Khan and members Salim Mahmud, Delwar Hossain, Md Maksudul Haque, Rahman Murshed; Prime Minister’s Principal Secretary Abul Kalam Azad; Power Division Secretary Monowarul Islam and Energy Division Secretary Abu Bakar Siddique attended the meeting.
“We sat with the prime minister’s adviser and the BERC had been given the green signal to hike power and gas tariffs,” a BERC member told the Dhaka Tribune yesterday wishing anonymity.
“BERC has called an emergency meeting tomorrow [Thursday] about the power and gas tariffs. Prime Minister Sheikh Hasina, who is in charge of the Power, Energy and Mineral Resources Ministry, will be briefed after the meeting. Upon getting her nod, the new prices will be made effective on September 1, 2015,” he said.
“The bulk electricity tariff might be hiked by 5.5% while the retail price will be hiked by 4.5% on average. The price of gas might be hiked 20% on an average,” he added.
“However, the price of gas used in the power and fertiliser plants will not be hiked,” he also said.
According to a high-ranked official of the Energy Division: “Decision on reducing the price of fuel oil is not yet finalised. It will take time because analysis is going on for fixing the reduced pricing.”
The cost of production and distribution of a single unit of electricity now stands at Tk6.54 while the rate at the wholesale level is Tk4.70.
Since 2009, the BERC has increased power tariffs six times.
In the latest increment made in September 2012, power tariff at the bulk level was raised by 17% to Tk4.70 per unit.
In March 2014, retail price of electricity was raised by 7.17% to Tk6.5 from the previous Tk5 per unit rate.
The last time the price of gas was increased in November 2008. After coming to power in 2009, the Awami League-led government only increased the price of compressed natural gas (CNG) several times.
Source: Dhaka Tribune
