The financial loss of the state-owned Bangladesh Power Development Board (BPDB) is likely to cross Tk 54,000 crore in the current fiscal after the hike in the price of gas increased their input cost. In 2021-22 its losses were Tk 29,915 crore. “We have to count Tk 10,000 crore extra cost to pay the gas bills following the new gas price enhancement,” a top official of the BPDB told UNB. He said the new cost of gas purchase was already communicated to the Power Division which had already raised the issue at a high-level meeting at the Prime Minister’s Office (PMO) seeking further instruction. The government on January 18 raised the retail gas prices for public, private and captive power plants and also for industries and commercial users with effect from February 1. Also Read: Saudi firm, BPDB sign deal to set up 1000MW solar power plant in Bangladesh As per the new government announcement, the gas prices have been increased by almost three times for public and private power plants while almost double for captive power plants and industries, and significantly hiked for commercial users. However, prices for household consumers, CNG-run for motor vehicles and tea estates were kept unchanged.  The Energy and Mineral Resources Division set the prices through a gazette notification issued on Wednesday applying the new amendment to the Bangladesh Energy Regulatory Commission (BERC) Act, which empowered the government to set all kinds of energy prices bypassing the regulator’s jurisdictions at any time. As per the gazette notification, the public and private power plants including the IPP and rental power plants will pay gas price at Tk 14 per unit (each cubic metre) instead of previous price of Tk 5.02. The rise is 179 percent. Read More: The Tk 700 crore per month hole in the deal with Adani Power The captive power plants, small power plants and commercial power plants will pay Tk 30 per unit instead of the previous price of Tk 16 which is an 88 percent rise. It means after the current enhancement in gas price, the loss in the space of one fiscal will go up by over Tk 24,000 crore, said the sources at the BPDB - an almost 80 percent jump. According to BPDB’s own latest estimates, the financial loss was supposed to cross Tk 48,000 crore in the 2022-23 fiscal from Tk 29,915 crore in the fiscal year 2021-22. But after the hike in bulk power tariff, the loss was calculated to come down by about Tk 4000 to Tk 44,000 crore. “But now the loss will go up by Tk 10,000 crore due to the gas price hike effective from February 1,” said the official referring to their latest calculation.     Read More: Saudi firm, BPDB sign deal to set up 1000MW solar power plant in Bangladesh The directorate of finance of BPDB prepared this calculation on the basis of an audited report, official sources said. On November 21, the bulk power tariff was raised by about 19.92 percent – to Tk 6.20 per kilowatt hour (each unit) from the previous Tk 5.17 – with effect from December 2022. As per the calculation, the loss has shot up excessively mainly for the two reasons — primary fuel price escalation and devaluation of the local currency. "Among the two, the devaluation of local currency emerged as the major reason," a top official of the BPDB told UNB. Read More: BPDB’s financial loss set to increase by over two-thirds to Tk 48,000cr He informed that the BPDB was going to incur a loss of about Tk 10,000 crore solely due to the high rate of dollar. Earlier, the US dollar exchange rate was calculated at Tk 85 which is now at Tk 107 which means the cost increased by Tk 22 per dollar. The BPDB has to pay about $9 billion annually to buy electricity from private sector plants, to pay capacity charges and also to import other materials from abroad for its own purposes.   The BPDB has a power purchase agreement with a huge number of private power generation companies to buy their electricity. Available statistics reveal, currently, the country’s installed power generation capacity is over 25,500 MW and more than 50 percent of electricity is generated by the private sector through independent power producers, rental and quick rental power plants. Read More: BPDB submits retail power tariff adjustment proposal seeking a 19.44 percent hike Import of electricity from India is also counted as private sector generation. The private sector operators mainly use furnace oil, natural gas and diesel. Of these, 4,700 MW is generated by using furnace oil.

At least 4 houses and a jute warehouse were gutted in a fire at a market in Gaibandha's Gobindaganj upazila on Wednesday morning. Arif Anwar, station officer of Gobindaganj Fire Service Station, said that the fire broke out in the jute godown owned by Ajhar Ali at Mahimaganj Market around 11am and soon engulfed the adjacent houses. On information, three fire-fighting units rushed to the spot and brought the fire under control after two hours of frantic effort. Read: Banglamotor bus fire tamed after more than 30 minutes The fire might have originated from an electric short-circuit, he added. No injuries or casualties were reported, said the officer adding that the extent of damages is yet to be ascertained.

Walton Hi-Tech Industries Monday said it suffered losses in the July-September quarter due to price hikes of materials, higher freight costs, vulnerable market conditions and the devaluation of the taka against the dollar. The electronics company posted a Tk46.05 crore loss in the first quarter of the fiscal year 2022-2023, and its earnings per share (EPS) dropped to Tk1.52 from the Tk281.12 crore profit and Tk9.28 EPS in the same period last year, according to the unaudited financial statements. The dollar exchange rate was Tk84.82 in July 2021. But it started to climb upward in May this year. In May, the price in the open market crossed Tk100. Read more: Q3 2022: Grameenphone reports 6% revenue growth despite ban on SIM sales So, Walton said, it suffered foreign currency losses during the current fiscal year's first quarter amounting to Tk262.45 crore, which was only Tk10.11 crore in the same period of the previous fiscal year. Read more: Walton CEO, CMO score Bangladesh C-Suite Awards

At least 65km of the road network has been badly damaged due to the recent flooding in Sylhet City Corporation. According to the officials of the Road and Highways Department, LGED and City Corporation, the roads have been affected most during the flood. And even after the roads were submerged, traffic movement continued. As a result, the amount of damage has increased, they said. There are two important roads in the city corporation area. One of them is Sunamganj road starting from Ambarkhana and the other is Subhani Ghat road via Kumarpara. Both the roads went underwater and were badly damaged during the flood. Noor Azizur Rahman, a chief engineer of Sylhet City Corporation, said more than a hundred roads in the city area have become unfit to use. Besides, all the roads along the Surma River have been damaged. "The total loss amounts to Tk 200 crore,” said Azizur". Read: Flood situation worsens in Sylhet; low-lying areas in city inundated He said that the more damaged roads are being repaired at some places. However, not everything has been done yet. Advocate Saleh Ahmad Salim, councilor of Ward No. 22 of Sylhet City Corporation, said that there are 108 roads in his ward. All roads have been affected by the recent flooding. He demanded that the damaged road be repaired as soon as possible to ease the suffering of the people. Meanwhile, the city mayor and chief engineer have talked to the road officials to repair the damaged roads as early as possible.

Bangladesh Petroleum Corporation (BPC) is now incurring a loss of Tk 63 crore per day as the state-run company sells its imported products at rates lower than import cost. According to fuel marketing agency, it has to incur a loss of Tk 37 per litre in the sale of diesel, Tk 10 in octane, Tk 15 in furnace oil and Tk 7 in jet-fuel. “We’ve really been facing a tough situation. Everyday we’re communicating the situation to the Energy and Mineral Resources Division”, ABM Azad, chairman of the BPC told UNB. He, however, declined to give any indication on any possible increase of the petroleum price in the country to offset the loss. He said BPC has been considering different options and sending those to the top policy making level. Also read: BPDB’s extra purchase order of petroleum puts BPC in trouble “The government is the ultimate authority to make the final decision on any issue in regard to the petroleum fuel”, said the BPC chairman. Responding to a question on any cut in taxes on the import of petroleum, Azad said, he did not make any such suggestion as it is beyond his capacity. But he noted that in last two fiscal years, the BPC had to pay Tk 19,000 crore in VAT and taxes.    The BPC chairman’s remarks came amid the growing petroleum price hike on the international market due to the war between Russia and Ukraine. The crude oil price already crossed $113 per barrel on Thursday which was below $100 before the start of the war.