Govt now can raise fuel, power tariffs

Staff Reporter :
The government can raise the price of oil, gas and electricity directly in the event of special circumstances under new ordinance.
Bangladesh Energy Regulatory Commission (BERC) holds public hearing, which takes at least 90 days to fix the energy prices and from now it won’t be, needed such hearing in case of hiking energy prices.
Apart from this, it was also discussed whether private companies would be allowed to import fuel and sell it in the country.
Cabinet Secretary Khandker Anwarul Islam disclosed the information while briefing journalists following a Cabinet meeting presided over by Prime Minister Sheikh Hasina at the Prime Minister’s Office on Monday. With this provision, the cabinet gave the final approval for the draft of the “Bangladesh Energy Regulatory Commission Ordinance 2022” in the meeting which will allow the government alongside BERC to control fuel and electricity prices.
The Energy Division will clear the decision within a day or two, the Cabinet Secretary said in reply to a query. The government is thinking to open the doors for importing fuel in private sector to solve the energy crisis caused in the context of the Russia-Ukraine war and a decision will be taken soon in this regard.
The Cabinet has also directed the Energy Division to take a decision in this regard at the earliest.
As per the existing law, the private importers will bring crude oil and refine it; the Cabinet Secretary said, adding that nobody can market fuel except the BPC (Bangladesh Petroleum Corporation).
Normally refined oil is prepared after refining crude oil 41 to 42 percent.
“The matter will be examined whether the private importers pass the refined oil to BPC or they can directly market it. But what needs to be done is that those who bring crude oil, bitumen and other by-products will either sell them in the local market or export them abroad,” Khandker Anwarul Islam said. He, however, said that two options are discussed regarding refined oil in the meeting.
“Either private importer can sell to the BPC or the BPC can allow them to sell by amending some other mechanism or law. In this case, BSTI has to monitor whether what is refined is acceptable for us or not,” the cabinet secretary added.