The government will adjust electricity prices four times a year to reduce subsidies. It will be gradually extended for the next three years.
The government's power division said this in a meeting with the IMF delegation at the secretariat on Thursday (May 2).
According to the sources of the meeting, the price of fuel oil may increase again this month. It will automatically increase the price in coordination with the global market. However, if the global market decreases, it will also decrease here. A directive has been issued in this regard on Thursday.
Stating that the price of electricity is being increased mainly in the name of adjustment, experts say that the government can also adjust the subsidy by reducing the cost. The government is not focused on reducing the cost of electricity production by curbing irregularities, corruption and wastage. Rather, even if there is no demand, they are increasing the cost of this sector by building one power plant after another without bidding.
The IMF delegation also held a meeting with the Division of Energy and Mineral Resources, Petrobangla, Bangladesh Petroleum Corporation (BPC) on Thursday. According to the sources of the meeting, Petrobangla and BPC have told the IMF in almost the same way that there is no pressure for new subsidies on gas and fuel oil. The IMF said to introduce the automatic method of oil prices (increases in the international market, increases in the country, decreases if it decreases), it has been done. Fuel oil prices are adjusted every month. It will never have to subsidize fuel again. In the first two rounds, the prices were slightly reduced, but in the last round, the prices increased. This is being practiced for three months.
In this regard, the State Minister for Power Nasrul Hamid said that this year the price of electricity will be adjusted several more times. This will continue for the next three years. However, in which month the adjustment will be made is yet to be decided.
Regarding the price of fuel oil, he said, adjustment will be made from the first week of March. But it seems to me that even if the adjustment is made, the price of fuel oil will not increase much. But if it changes it will depend on the global market.
It is known that since the Awami League government came to power in 2009, the price of electricity has increased 13 times.