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Business Insider Bangladesh

Govt to adjust power tariff from March 1

BI Desk || BusinessInsider

Published: 00:16, 28 February 2024  
Govt to adjust power tariff from March 1

Photo: Collected

State Minister for power Nasrul Hamid has said the government has decided to increase power tariff from March 1 to minimise government subsidy in the sector.

Those who consume up to 50 units will see a price hike of 34 paisa per unit and for those consuming above 50 units, the increase will range from 34 to 70 paisa (per unit), he said.

The new power tariff will come into effect from next month, he told journalists at the conference room of his ministry office in Dhaka on Tuesday.

Nasrul Hamid said that the price of electricity usually fluctuates depending on the fuel price globally, adding, "So we have to synchronize with that, there is no other way. We are going to adjust a very small amount of power tariff that is 34 paisa.... There are 1.40 crore lifeline customers. They pay bills at Tk. 4 (per unit), and those who are above, are charged Tk. 7. But on average our production cost is Tk. 12 per unit."

Additionally, the price of gas used in electricity production has been raised by 75 paisa per unit, he added.

Nasrul said that the government has been giving a major portion as a subsidy, adding, "Subsidy was increased more due to dollar exchange rate variation. The government gives Tk. 43,000 crore as subsidy annually."

"A gazette notification to this effect is set to be published soon," he added, reports BSS.