5th October 2021
EP Report

The government is facing huge fund shortage after an abrupt rise of fuel prices in the international market.


Bangladesh Power Development Board (BPDB) has yet to pay over two months of electricity bills to private sponsors while natural gas supply is facing unusual rationing due to substantial hike in natural gas tariff in the international market.


“Cost of electricity generation is significantly high now as it increased by around Tk 40 billion each in July and August 2021. It might cross Tk 50 billion in the current month thanks to the higher tariff of furnace oil, diesel, coal and LNG in the international market,” said a senior official.


The BPDB has a history of unpaid bill for only one month, he said.


Now, the furnace oil tariff rose to $265 per metric tonne, 2.5 times higher just in a year.


Besides, the LNG tariff increased to $25 per mmBtu (million British thermal unit) which was only $18 just a month ago.


The Energy and Mineral Resources Division (EMRD) scrapped a proposal to procure LNG from the international market due to excessive tariff under bidding method.


The EMRD will invite fresh tender for import of the LNG to meet for reeling demand of the fossil fuel for electricity generation as well as industrial production.

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