April 15, 2024, 3:56 pm

Staff Correspondent

2024-02-22 00:46:00 BdST

Implementation of automated fuel pricing likelyPower prices may rise in March

The government is going to hike power prices at bulk and consumer levels in March, with the prices of gas being used for generating electricity.

Alongside, the authorities concerned are also introducing an automated system of fixing fuel prices in line with the international market to comply with the loan conditions set by the International Monetary Fund (IMF).

With the implementation of the system, the prices of fuel will go up or down in the domestic market based on the prices in the global market.  

State Minister for Power, Energy, and Mineral Resources Nasrul Hamid on Tuesday hinted at the imminent hike in power and gas tariffs starting from the next month along with the implementation of the automated fuel pricing system.

At the secretariat, he told reporters that even if the price of electricity increases at the consumer level, gas price will rise in power generation. “We want to adjust the prices very soon. However, the power price may increase slightly at the consumer level, except for the customers who use electricity the most.”

Nasrul said the main crisis is the devaluation of Taka against the US dollar. Earlier, the exchange rate of USD was Tk78, which now stands at Tk120.

“This has created a huge deficit. Although the price of fuel remained unchanged in the international market, due to the USD appreciation, it is now essential to adjust the prices.”

As per the previous announcement, the fuel price would be aligned with the global market with an effect from the first week of March, he said.

Officials concerned said the initiative to hike power prices afresh has been taken to reduce the subsidy in the sector. Experts, however, said the hike would have a negative impact on public life.

Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.

Popular Article from Economy