Given the global situation, the price of electricity in the country has been increased by 5% to adjust the subsidy, a press release quotedState Minister for Power, Energy and Mineral Resources Nasrul Hamid as saying on Thursday.
Earlier in the day, the price of electricity was raised at the consumer level amid calls from business leaders and consumer groups not to increase the prices.
They argued a power price hike would fuel the cost of production and commodity prices, ultimately adding to inflationary pressure.
The press release sent from the ministry said: "The government has adjusted the retail price of electricity by 5% in the public interest with the aim of adjusting the subsidy under Section 34A of the Bangladesh Energy Regulatory Commission Act 2003."
State Minister Nasrul Hamid said that life line customers will have to pay Tk3.94 instead of Tk3.75 per unit. That means 19 paise per unit will increase. Life Line has 16.5 million subscribers.
He said: “Due to the shortage of natural gas in the country, the widespread use of imported liquefied gas, the increase in the price of fuel oil in the international market and the devaluation of the taka against the foreign currency, the Bangladesh Energy Regulatory Commission increased the price of electricity by about 20% at the wholesale level on November 21.”
“Distribution companies have applied for at least 15.43% increase in retail/consumer level electricity prices to cover their financial loss against a price increase of around 20% at the wholesale level,” he added.
