Special Correspondent :
Fuel prices are in inverse proportion to government subsidy. If the government generously subsidizes gas and electricity when prices of essential commodities rise globally, the local consumers can get fuels at a low cost.
But if the government toes the line of austerity and squeezes subsidy, logically the fuel prices scales up.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid said
this while speaking at a press briefing held at the secretariat in the capital on Thursday.
Against this backdrop, the Bangladesh Energy Regulatory Commission (BERC) has recommended to increase the price of gas.
“We have already proposed for the necessary subsidies and now the government is thinking about how much to invest in this sector,” the state minister said.
Referring to the price hike of oil and gas in the world market, the State Minister for Power, Energy and Mineral Resources said, “Prices of LNG are increasing due to the price hike of oil around the world. It is a matter of concern for us to move forward with the price hike of goods and hopefully we can handle this situation.”
“The 270 dollar oil has reached US$700. The LNG cargo has gone up to US$ 1200 which was US$300. It is very difficult to coordinate these,” he added.
When asked whether the fuel price will be increased or not, Nasrul said adding, “The BERC will fix the price and we want to keep it within the purchasing capacity of people.”
It is up to the government’s will how much money of exchequer it would inject in this sector in subsidy, he said, adding that the energy ministry wants to keep the fuel prices stable.
“We have already tabled our proposal to the government for subsidy as per the necessity. If the government accepts our proposal fully then there is no question. But, if the government agrees then the question will arise. It is the matter to see how the government manages the matter. Everything is dependent on it and we are ready to tackle the situation,” the state minister said.
In reply to a query on when the people will get uninterrupted electricity as the nation is now covering one hundred per cent electricity, Nasrul Hamid replied, “Expectation is increasing now and it will increase more day by day. Our big challenge is to provide uninterrupted electricity at an affordable price.”
Additional 1,500 megawatts of electricity is needed in the holy month of Ramadan as most of the mosques use air-conditioners (AC) during tarabih prayers, he said.
In response to receiving the Power Department Independence Award, Nasrul Hamid said, “We have done 100% electrification. We have illuminated every house in Bangladesh. The full credit for this goes to Prime Minister Sheikh Hasina. The Department of Power has received the Independence Award for its contribution to the socio-economic development of the country and for successfully completing 100 per cent electrification in Mujib Year. Every electrician worked tirelessly. The Department of Energy is also a partner in this achievement.”
Energy Division Secretary Md Habibur Rahman was present among others at the press conference.
