Power and Energy adviser Mohammad Fauzul Kabir Khan, has stated that the lack of competition in the energy sector and the monopoly of a few companies are causing the government to purchase fuel at higher prices.
Addressing a seminar organized by Dhaka Chamber of Commerce and Industry in the capital on Saturday, he said the government is providing a subsidy of nearly Tk 52,000 crore annually in the energy sector, amounting to about Tk 3,000 per capita.
The seminar on “Affordable Fuel Prices and Continuous Supply” was held by the Dhaka Chamber of Commerce and Industry, with a keynote presentation by Dr. Mohammad Tamim, Professor of Petroleum and Mineral Resources Engineering at Bangladesh University of Engineering and Technology (BUET). Several experts and industry leaders also participated in the event.
Khan explained that while consumers pay an average of Tk 8.55 per unit for electricity, the government buys it at a rate ranging from Tk 12 to 25 per unit.
He also noted that importing LNG costs Tk 70 per unit, but it is supplied to the industrial sector at a rate of Tk 30. The government bears the difference in costs as a subsidy.
The advisor emphasized that the lack of competition and the dominance of a few companies are forcing the government to buy fuel at high prices.
He further pointed out that the country requires 4,000 MMCF of gas, but currently only has less than 3,000 MMCF. To address the shortfall, efforts will be made to increase domestic gas production.
