The government will introduce dynamic tariff structure on fuel tariff in March or April, 2024 next, said State minister for power and energy Nasrul Hamid on Tuesday.
“We will introduce dynamic tariff on petroleum each month from March or April, 2024 as it will help to adjust fuel prices according to international market,” Nasrul Hamid said during his first view exchange meeting at the Bangladesh Secretariat, after taking the office as the state minister of the same ministry for the third consecutive tenure following the 12th National Parliament Election.
The dynamic adjust of tariff will also help to reduce any unwanted shock on fuel purchase like Russia-Ukraine war.
Then, Bangladesh has paid additional USD$13 billion to purchase fuels, LNG and coal. “For example, the natural gas prices increased to $67 per mmbtu from only $7 before Russia and Ukraine war…..as same, the per barrel oil raised to $140 from only $70,” according to him.
Besides, the war also pushed to increase the coal prices to $450 per tonne from only $75, the minister said.
He added the dynamic prices will also introduce on natural gas tariff and electricity prices too after introducing it to fuel.
“We are overcoming all the difficulties on outstanding dues on purchasing electricity from independent power producers and hopeful to pay large chunk within a week,” Nasrul said.
Earlier, the minister said the outstanding dues in power and energy estimated $2.5 billion.
The minister added the ministry will meet with the ministry of finance to mobilize fund to meet the requirement of uninterrupted supply of power and energy.
The minister, however, said the government is expected to get a large prospect with an estimated additional 1.6 trillion cubic feet of natural gas from US company Chevron sponsored flunk area at Bibiyana gas field.
“We are expected to ensure uninterrupted gas supply in the country by 2026 as we are receiving better result from ongoing oil and gas exploration,” he said.
The ministry will get top priority to drill 46 wells by next year. After then, the government will also drill 100 wells, according to him.
Responded to a question, the minister said the ministry will also conduct oil and gas exploration anytime of the current year after interpretation of seismic data.
The minister is expected to produce additional 500mmcfd of natural gas from local gas fields through priority projects.
According to the minister, the demand of natural gas will be increased to 6000mmcfd by 2026. Of them, 20 percent will come from international procurement and rest of from local production.
“We are preparing to supply 6,000 million cubic feet of gas to meet the daily demand in 2026. Our priority in the current period will be to build the gas pipeline from Bhola to Barisal and increase utilizing our own gas resources,” he said.
While asked about the current gas crisis, the state minister said, “People are facing gas shortage as a floating storage and re-gasification unit (FSRU) is going under regular servicing, but it will be over in a day or two.”
“Petrobangla is working on gas management planning. Hopefully, we will get good news on Bibiana gas field soon,” Nasrul said.
