Bangladesh's interim government has decreased the prices of petroleum fuels at the retail level with effect from September 1. As per a gazette notification issued by the Energy and Mineral Resources Division on Saturday, the price of diesel and kerosine at the consumer level will be Tk 105.50 per litre, down by Tk 1.25, from the previous price of Tk 106.75. Price of petrol will be decreased by Tk 6 to Tk 121 per litre, from the previous price of Tk 127.  Read more: Govt's executive authority to raise power and gas prices cancelled through ordinance Price of octane will also be decreased by Tk 6 to 125 per litre, from the previous price of Tk 131 per litre.  The new prices of petroleum fuels have been set in continuation of every month’s adjustment process under an automatic pricing formula in line with the global market price, said the Energy and Mineral Resources Division. 

Power tariff will be increased from February 1 instead of March 1, said State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Thursday (February 29, 2024). Gazette notification will be issued today in regard to the power tariff adjustment, he said while briefing reporters at his ministry. Earlier he said the new tariff will come into effect from March 1. He said the power tariff will be hiked between Tk 0.34 and Tk 0.70 per unit for all kinds of consumers depending on their volume of consumption while gas price will go up by Tk 0.75 per unit only for power plants. Govt raises gas prices for power plants by Tk 0.75 per unit He also said that a dynamic fuel pricing will be introduced for the consumers from March 1 under which price of petroleum fuel will go up and down in line with international market price. “Each month fuel price will be declared for the consumers”, he said adding neighbouring India do this every day. He noted that the steps have been taken to minimise the government losses caused by the increase in dollar rate. “This year the government will incur loss of Tk 43,000 crore due to sale of electricity at lower price,” he said. This step has been taken as part of the government move to come out of the subsidy now being given to the power sector, said the minister. According to the BPDB’s Annual Report 2022-23, the fiscal year saw the production of 87,024 million kilowatt hours of electricity at a total cost of TK 98,646 crore.    Its per unit production cost was Tk 11.33, while it was selling electricity at Tk 6.7 per unit — incurring a loss of about Tk 4.63 per unit. Electricity price to go up from March 1: Nasrul This imbalance has led to a staggering loss of Tk 47,788 crore for the fiscal year, as the government grapples with purchasing power from private and international sources at significantly higher rates. With this huge loss, the government has been facing great trouble as it has to purchase electricity worth Tk 82,778 crore from private sector power producers, while it generates electricity worth Tk 13,307 crore from its own generation plants. The annual report also shows that the BPDB’s average per unit production cost from its own plants is Tk 7.63, while it is Tk 14.62 at the independent power producers or IPPs (private sector), at rental plants Tk 12.53, at public plants Tk 6.85, and imported power from India at Tk 8.77. The government purchases electricity from the private sector and India in dollars. Read more: Bangladesh seeks ITFC cooperation to modernise power distribution, transmission system

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said that the government has a plan to introduce an automatic fuel price adjustment system in the next two months. “We have been working on modernising the pricing policy to get out of the subsidy in selling petroleum. Under the system, when the price goes up or down in the global market, local prices will be automatically adjusted with new price”, he told reporters on his last day of office as the state minister for power and energy in the tenure of the current government.    Nasrul Hamid said that the government has no control over the global energy price. Army chief inspects military activities in Jashore, Savar, Dhaka ahead of polls “If there is any energy crisis on the global market, we need to face it efficiently and the government always tries to remain prepared to face”. Mentioning looming risk of a new crisis centring the Middle East crisis against the backdrop of any possible new war, he said if the situation deteriorates, the power and energy supply situation may worsen. “We are getting prepared but worries prevail about the level of the energy crisis”, he added. 1 more dengue patient dies; 153 hospitalised in 24hrs About any possibility of power tariff reduction after commencement of a number of new base-load large power plants, he said there would not be much benefit from it because of the dollar price escalation.  Prices of primary fuels like coal and petroleum may decline, but due to increasing rates of dollars, overall generation cost is not coming down. He said that the Chevron-operated Bibiyana gas field’s gas reserve has a potential to get over 1 TCF (trillion cubic feet) of gas in the new area where drilling works are taking place. He mentioned that gas production may decrease towards 2025-26, but the gap will be filled in 2027 with the new import plant. Dense fog disrupts flight operations at Dhaka airport; 13 flights diverted Currently, the US-based Chevron Bangladesh is producing gas from a total of three blocks. They have Bibiyana gas field in block-12, Jalalabad gas field in block-13, Moulvibazar gas field in block-14. Bibiyana is one of the largest gas fields in the country. The 3 gas fields produce about 44.3 percent while total gas production is about 2200 MMCFD in Bangladesh.

A move by the government to review a 14-year-old renewable energy policy has been lauded by experts and industry stakeholders as Bangladesh is desperate to find out alternative sources of power generation amid a volatile global fuel market and gas shortages at home. In the energy-hungry country, which is struggling to ensure energy security for its burgeoning manufacturing sector amid forecast that the economy could face further stress, experts say renewable energy sources could be a major option to ensure adequate supply to its industries. Industry insiders say the decision to revise the policy came as the government has a target to generate 40 percent of electricity from renewable energy by 2041 in line with its commitment to the COP26, a UN-backed climate conference held in Glasgow in November last year. The current crisis in the country’s power sector, stemmed from the rising prices of fuel as a result of Ukraine war, has also prompted the government to look for other options for energy. Also read: Renewable energy jobs rise to 12.7 million globally. According to official statistics, the country now generates about 911 MW (solar 677 MW, hydro 230 MW and others 2 MW) from renewable energy sources while the total power generation is more than 25,000 MW, which means the renewable energy's share is less than 4 percent. In June, the government suspended operations of all the diesel-run power plants in the country, cutting up to 1500 megawatts of daily production, to ease pressure on the country’s dwindling foreign currency reserves. Business bodies raised their concern about power disruptions. Earlier this month, BGMEA President Faruque Hassan said that the situation is so grave that factories are remaining without power now for around 4 to 10 hours a day. Talking to UNB, experts and officials say the move to revise the "Renewable Energy Policy of Bangladesh 2008" to make it more effective in the changed scenario in the country’s energy and power sector is very positive. Read: Govt working to revise renewable energy policy: Recent primary fuels crisis a reason But they say taking up “a target-oriented action with an effective roadmap” to achieve a power generation goal should find its way. They also strongly suggest that setting up of a separate division under the power and energy ministry to effectively implement the renewable energy schemes should be undertaken under the revised policy. “Unless a specific numeric megawatt-based target is set, any goal might not be achievable despite bringing any changes to the existing policy”, Dr M Tamim, eminent energy expert in the country, told UNB. Read Govt working to revise renewable energy policy: Recent primary fuels crisis a reason Officials say the Sustainable and Renewable Energy Development Authority (Sreda), the focal point under Power Division of the government, has already appointed a consultant. The consultant - Development Technical Consultants Pvt. Ltd (DTCL) – held a consultation meeting on September 20 as part of its process to accommodate opinions of the stakeholders and experts on the issue. The firm has also been holding a series of meetings with experts and other groups to finalise a draft proposal on the policy. Read Green Economy in Bangladesh: Prospects and Challenges Dr Tamim, who was also involved in the previous process of the policy formation, said there should be a specific numeric target instead of current percentage-based goal in renewable energy to implement a plan. “A specific target and an action-based roadmap are more essential than a policy to achieve a goal when it comes to the renewable energy issue”, he said adding that the government’s direct involvement with the process is crucial. To add dynamism, Tamim also suggested creating a new division, headed by a full-fledged secretary, under the power, energy and mineral resources ministry, to implement the government’s plan on renewable energy. Read Huawei Technologies intends to support RMG industry in renewable energy Identifying the scarcity of land a major impediment for a renewable energy project, Dr Tamim also suggested for arranging land for solar power projects by the government as it is difficult for a private sector investor to find an undisputed large piece of land in one location. “Only government can arrange a large undisputed land through acquisition”, he added. Echoing Dr Tamim, Dipal Barua, president of Bangladesh Solar and Renewable Energy Association (BSREA), said the government has to play a major role in facilitating private investors to invest in renewable energy. Read TEI GET to promote renewable energy in Bangladesh The neighboring India has a separate ministry --Ministry of New and Renewable Energy--to deal with the renewable and non-conventional energy issue, he said. “That’s why India has been in the leading position in South Asia with its current renewable energy capacity of 150,000 MW,” he said. According to official data, of India’s total 150,000 MW of renewable energy, solar is 48,550 MW, wind 40,030 MW, small hydro power 4,830 MW, biomass 10,620 MW, large hydro 46,510 MW, and nuclear 6,780 MW. India has a goal to generate 500 GW renewable energy by 2030. Read Why solar power investors are in no man's land Munawar Moin, Vice President of BSREA and President of Solar Module Manufacturers Association of Bangladesh (SMAB), said the government should introduce a policy under which the local solar industry could utilise their full potential. Cost of solar energy decreased substantially and has created a huge scope for investment in mega projects, he said. Sohel Ahmed, managing director of Grameen Shakti, a leading firm in renewable energy, founded by Nobel laureate Muhammad Yunus, said that the current Net Metering Policy could play a vital role in promoting rooftop solar power by “Opex Model” if the government effectively applies one of its provisions through which action could be taken against a defaulter customer by disconnecting his conventional electricity line. Read Bangladesh seeks IRENA’s support to explore renewable energy potential He also said if an insurance policy is introduced in Net Metering Rooftop Solar projects, it will give more confidence to investors to invest in rooftop solar plants. In solar power system, net metering allows residential and commercial customers who generate their own electricity from solar power to sell the electricity they are not using back into the national grid.

Joko Widodo, President of Indonesia, is contemplating buying Russian oil to ease the burden of rising energy prices. In an interview with the Financial Times, Widodo said, “We always monitor all of the options. If there is the country (and) they give a better price, of course,” Widodo raised the price of subsidised fuel by 30% earlier this month, citing financial concerns as the reason for the price increase. Read: Indonesia hikes fuel prices by 30%, cuts energy subsidies Thousands of protestors gathered last week in Jakarta and other major cities to condemn the government’s decision to reduce fuel subsidies. The 270 million-strong nation was rocked by demonstrations after the decision. However, any decision to buy Russian crude oil at a price higher than the G7-agreed price cap could result in US penalties against Indonesia. Sandiaga Uno, Indonesia’s minister of tourism, claimed in August that Indonesia had received a 30% discount on Russian petroleum. The nation’s state-owned oil corporation, Pertamina, then declared that it was examining the risks of acquiring Russian oil. Read: Special Presidential Envoy for Climate Kerry to visit Greece, Indonesia, Vietnam Due to rising food costs, Indonesia, the largest economy in Southeast Asia, reported annual inflation of 4.7% in August.

The government has reduced launch fare by 15 paisa per kilometre after fuel prices were lowered by Tk 5 per litre. The Ministry of Shipping issued a notification in this regard today (September 1, 2022). The new fares will be effective from tomorrow, it added. Fares have been reduced to Tk 2.85 per km for the first 100 kms from the existing Tk 3 per km. Beyond the first 100 kms, the fare has been decreased to Tk 2.45 per km from the existing Tk 2.60. The minimum fare has also been fixed at Tk 30 -- Tk 3 reduced from the existing Tk 33, according to the government notification. Read: Government cuts fuel prices by Tk5 per litre On Monday, the government lowered fuel prices by Tk 5 per litre, 23 days after raising them by up to 51.68 per cent. Prices of diesel and kerosene are now Tk 109, petrol Tk 125, and octane Tk 130 per litre at the filling stations, State Minister for Power, Energy, and Mineral Resources Nasrul Hamid told UNB. On August 16, the government increased launch fares in view of a 42.5% hike -- from Tk 80 to Tk 114 a litre -- in the diesel price. In 2021, the launch fare was fixed at Tk 2.30 per km for a distance for the first 100 km while the fares beyond the first 100 km Tk 2.00 per km. The minimum fare was Tk 25.

The government Monday rejected the launch owners' proposal to double the existing launch fare amid the recent 42.5 percent hike, from Tk 80 to Tk 114 a litre, in diesel price. Launch owners are seeking a 100 percent increase in fares in response to the new fuel oil prices set by the government. "The Bangladesh Inland Water Transport Passenger Carriers Association, an organisation of the launch owners, proposed to double the current fare. If their proposal is accepted, the fare will be Tk4.60 and Tk4 from the existing Tk2.30 and Tk2 per kilometre, respectively," Shipping Secretary Md Mostafa Kamal said. Against the backdrop of launch owners' proposal for a steep fare hike, the shipping ministry formed a working committee to recommend new rates by taking into account the potential implications for all stakeholders. The committee will submit its report within this evening, Mostafa said after a meeting with the launch owners in Dhaka. Read: Students stage protest against fuel price hike at Nilkhet "Launch fares will be increased reasonably through discussion. We hope to publish a gazette within August 10," he added. In November 2021, after a 23 percent hike in diesel price, launch fares were increased by more than 35 percent. The minimum launch fare was raised to Tk25 from Tk18.

The recent hike in fuel price will “definitely” impact the agriculture sector, but the government has no immediate plan to increase the subsidies on diesel farmers use to run irrigation pumps, said Agriculture Minister Abdur Razzaque on Wednesday. “The process to provide subsidy in diesel to farmers for irrigation purpose is so complex. So, the government has no plan to provide any new subsidy in it,” he said. Razzzque said this at a press briefing at his office after his recent visit to the Netherlands and the UK. Read: Change food habit, reduce dependency on rice, Razzaque urges people Besides, the government has now no plan to raise the price of fertilizer despite its four-fold increase in international market, he said. Replying to a question about the recent hike in fuel and kerosene prices Razzaque said “Definitely there will be impact on agriculture sector and there is no question to deny it.” He said the farmers have already been going through many problems and in the peak season this year they did not get desired price for their crops. He, however, said farmers will not be immediately affected by diesel price hike as 40 per cent of the irrigation pumps are run by electricity.   The minister further said that if the price of diesel falls in the international market Bangladesh government will also reduce it. On the outcome of the visits he said the Dutch government has assured to provide necessary assistance to Bangladesh in producing high yielding variety of onion. “There is problem in the country to preserve onion and due to lack of preservation onions are rotting and that’s why the Netherlands will provide technical assistance to us,” he said. The Netherlands will send a trade mission in March next year to discuss support in agriculture sector and expansion of trade relation between the two countries. Read: Agro revolution to be seen in saline areas: Dr Razzaque The mission will provide support in building silos for preserving potato, production of climate-tolerate crops, building green and glass houses, he added. During the UK visit, Bangladesh signed MoU with Food Standard Agency of UK for setting up modern testing labs and developing internationally accepted Phytosanitary certification system in the country, Razzak said. This will help boost Bangladesh’s agro-products to European countries, he said.   He said the government focusing on setting up agro-processing industry aimed at boosting agricultural exports. This will also help raise farmers’ income. 

Bangladesh has planned to import 6.4 million metric tons (MT) of fuel oils for the calendar year 2022 amid the overheated international market. The global oil market remained volatile as petroleum prices have gone up to a highest $83 per barrel for crude oil and $93 for refined fuel from below $30 for crude and $40 for refine. In terms of quantity, this is one (1) million MT up from the current year’s total import as the country imported 4.544 million MT in 2021 to meet its requirements up to December this year. Read: BPDB’s extra purchase order of petroleum puts BPC in troubleThe figure came from the annual import plan of Bangladesh Petroleum Corporation (BPC) which was already approved by the Cabinet Committee on Economic Affairs, the highest policy approval body. In the proposal, the BPC made the petroleum forecast mentioning that the Covid-19 situation has improved with vaccination of 10 percent of the population and the regaining of the country’s economic activities resulting in an increased price of petroleum fuels. However, the country’s principal petroleum marketing body did not give any indication of financial involvement to execute its fuel import plan.“We’ve just received a nod from the government’s highest policy level. But no cost has so far been calculated,” said Syed Mehedi Hasan, director (operations and planning).“Hope, we can make an estimate about the possible cost by next month,” he told UNB. BPC documents also show that it has taken approval for the import of another 670,000 MT of refined fuel to “deal with any emergency situation” caused by the rise in fuel demand.Though the BPC did not calculate the possible cost, the economists and energy experts are worried about the escalation in the cost in petroleum import.They said it is obvious the country’s petroleum import bill will go up enormously in 2022 for two reasons -- one for higher quantity of imports and another for higher price in petroleum on the global market, said Dr Khondaker Golam Moazzem, Centre for Policy Dialogue (CPD) director (research). Considering the upward trend in price and demand, he calculated that the country may have to spend $3.94 billion (equivalent to Tk 33,056.6 crore) in 2022 to import the proposed 6.4 million MT of petroleum. The calculation was made including the existing 34 percent taxes in the cost. He said this means the country will need to pay an extra $516 million in 2022 over its spending of $3.424 billion in 2021. Read: CPD for reinstating previous fuel prices If 34 percent overall taxes are waived, the cost will come down to $2.94 billion, said Dr Golam Moazzem, who believes the government should cut the taxes on import of petroleum to give a relief from the burden of high cost of fuel for the sake of economic recovery from the shock of the Covid-19.

Two Jatiya Party MPs -- Mujibul Haque and Rustum Ali Faraji -- on Sunday demanded the government reduce diesel prices to ease public sufferings. “Common people, particularly the poorer section, are now suffering due to diesel price hike. I would like tell the Leader of the House and the Prime Minister either to reduce the price, or withdraw the recent decision, or make an alternative arrangement,” said Mujibul Haque (Kishoreganj-3), taking floor on point of order in Parliament. He said the diesel price was suddenly raised at a time when people are trying to return to their normal life after two years of sufferings caused by the Covid-19 pandemic. Also read: Decision to raise fuel price was political, not bureaucratic: Energy Secretary Mujibul, also known as Chunnu, said the diesel price was increased by 23 percent this time, but such a big hike was not seen in the past. Mujibul said the government took the decision at a time when people were going through a tough time due to the price hike of essentials. The diesel price hike also contributed to a rise in transport fare and the prices of essentials, adding to the woes of people, he added. Later, another Jatiya Party MP, Rustum Ali Faraji (Pirojpur-3), asked the government to review its recent decision of diesel price hike, prioritizing the public interest. Also read: Raising fuel price, transport fare an anti-people move: GM Quader “The government should either reduce the diesel price or give subsidies,” he added.