The local overall electricity generation costs have fallen amid a downtrend in global oil prices with the spread of the Covid-19 pandemic across countries.
"The falling oil prices have reduced electricity generation costs slightly," said an official at Bangladesh Power Development Board (BPDB).
He, however, said the decline in power generation cost did not reach any point to cut the overall power tariff.
"We're still counting Tk 0.70 per unit (1.0 kilowatt hour) loss as we're selling at Tk 5.12 per unit against the production cost of Tk 5.87 per-unit," he added.
Had the government allowed the BPDB to purchase diesel and furnace oil at international rates, sources said, the overall generation costs would have been lower.
The BPDB now buys diesel at the government-fixed rate of Tk 65 per liter from Bangladesh Petroleum Corporation to generate electricity at diesel-fired power plants owned by both public and private sectors.
But the international market price of diesel is hovering at an estimated Tk 50-55 per liter, said a source familiar with the international trading of oil products.
Similarly, the BPDB has also been purchasing furnace oil at the government-fixed rate of Tk 42 per liter.
But the international market price of furnace oil is currently hovering around Tk 35-38 per liter, the official cited.
