Bangladesh is set to increase electricity prices for the first time in 26 months, with proposals to raise bulk, retail, and transmission tariffs amid rising fuel import costs and mounting subsidy pressure.
According to sources at the Bangladesh Energy Regulatory Commission, public hearings on the proposed tariff adjustments are likely to be held on May 20 and 21. If approved, the revised rates could take effect from June.
The move comes in the wake of rising global energy prices, driven in part by geopolitical tensions involving the United States, Israel, and Iran.
On April 18, the government adjusted fuel prices, but losses persist—particularly in diesel, where the loss is estimated at Tk 89 per liter despite a retail price of Tk 115.
Meanwhile, the cost of LNG imports has nearly doubled, prompting discussions on gas price adjustments as well.
The Bangladesh Power Development Board has proposed increasing bulk electricity tariffs by Tk 1.20 to Tk 1.50 per unit, representing a rise of 17% to 21%.
Distribution companies have proposed raising retail tariffs by Tk 1.29 to Tk 1.61 per unit, or 14.21% to 17.76%.
BPDB estimates that electricity generation costs for the 2026–27 fiscal year could reach Tk 143,108 crore, with an average generation cost of Tk 12.91 per unit.
In contrast, projected revenue at current bulk tariffs would be around Tk 77,553 crore, leaving a deficit of approximately Tk 65,555 crore.
Currently, the average bulk electricity tariff stands at Tk 7.04 per unit, while the average retail tariff is Tk 8.95.
