DHAKA, Feb 29, 2024 (BSS) - State Minister for power Nasrul Hamid today said the government has decided to increase power tariff from February 01 to minimize government subsidy to the sector.

The average price of electricity is Tk. 12 per unit, but selling price is only Tk. 7. The government gives Tk. 43,000 crore as subsidy annually," he told journalists at his ministry conference room.

The state minister said that a gazette notification to this effect will be issued soon.

He said that 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 life line customers. They pay bill at Tk. 4 (per unit), those who are above, are charged Tk. 7. But on an average our production cost is Tk. 12 per unit."

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

He said if the price of fuel increases in the world, then it will be increased in Bangladesh, if it decreases in the world, it will also be decreased in the country.

Nasrul Hamid said the dynamic price system will be done in the first week of every month, adding, “Our neighbouring countries do this every day. For example, if we talk about Kolkata, the price of one liter diesel is Tk. 133, but its price in our country is Tk. 109.”