Prime Minister Sheikh Hasina on Wednesday underlined the need for downsizing subsidies in the power sector and sought full cooperation from the people in this regard.

"I hope that people of the country will cooperate with us," she said stressing that the reduction in government subsidy is needed to face the uncertain situation created by the Russia-Ukraine war and the sanction on Russia imposed by the US and European countries.

The prime minister said this while inaugurating country’s first campus-based business incubator ‘Sheikh Kamal IT Business Incubator’, Sheikh Jamal Dormitory and Rosy Jamal Dormitory at Chittagong University of Engineering and Technology (CUET) virtually from her official residence Ganobhaban.

She mentioned that in the power sector the government is providing some Tk 28,000 crore in subsidy while the amount is Tk 25,000 for LNG import.

Read: PM mulls area-based specific time power cuts to save fuel

She said the government has to resort to load-shedding and cut down on power production to ease the subsidy in this sector.

PM Hasina explained that for every cubic meter of LNG the government gives Tk 59.60 where the consumer level price is Tk 9.69 only.

"The price has been increased recently to Tk 11. But still there is huge subsidy there,” she said.

She mentioned that renewable energy power production cost Tk 12.84 per KW, where the government is charging Tk 5.08 only.

The cost of power production by furnace oil is Tk 17.41, while the selling price is Tk 5.08 only. For diesel, the production cost of per unit electricity is Tk 36.85 while the selling price is Tk 5.08 only.

The production cost of coal-based power is Tk 12.37 whereas the selling price is Tk 5.08 only.

"How long will we be able to provide such huge amount of subsidy? We have to provide food, medicare and home for the homeless people," she said.

The prime minister said that this year's budget has a government allocation of Tk 84000 crore as subsidy.

"If we do not reduce the subsidy from where the government will get money," she questioned.

She also urged all to practice austerity in consumption, especially in power along with increasing their respective savings.

"We have only one option, I have already directed to impose area- based load shedding and prepare a routine for that to inform the people earlier so that they can take preparation and suffer less."