Staff Reporter :
The interim government has achieved savings of Tk 14,131.81 crore in the power and energy sector over the past year through a series of targeted cost-reduction initiatives.
According to officials from the Ministry of Power, Energy and Mineral Resources, since taking office on 8 August 2024, the administration has introduced reforms, revised procurement processes, and fostered financial partnerships aimed at reducing public expenditure.
Data from the Energy Division shows that the repeal of the Speedy Supply of Power and Energy (Special Provision) Act, 2010, along with the purchase of 49 cargoes of fuel oil at reduced premiums through 23 organisations in line with the Public Procurement Rules, 2008, generated savings of Tk 302.70 crore.
On 22 July, Petrobangla signed a short-term agreement with Oman-based OQ Trading Limited to import 17 cargoes of liquefied natural gas (LNG), cutting costs by a further Tk 308.13 crore.
In addition, the government has formed a consortium with selected domestic and foreign commercial banks to provide non-funded and funded
guarantee facilities under the World Bank’s International Development Association (IDA) programme, initially worth USD 350 million from November 2025.
The facility will be expanded to USD 700 million in 2027, with estimated savings of Tk 2,772 crore over seven years.
Government-to-government negotiations and international tenders for the 2024-25 fiscal year have reduced energy procurement costs by Tk 7,054 crore compared with the previous year. Cost efficiencies in the procurement of explosives for stone breaking between April and June 2025 saved Tk 2.40 crore.
The ministry has also boosted revenue, securing an additional Tk 640.71 crore annually through a gas supply agreement with Karnaphuli Gas Distribution Company Limited and KAFCO, and Tk 463.26 crore annually through a separate agreement between Jalalabad Gas Transmission and Distribution System Ltd. (JGTDSL) and LafargeHolcim Bangladesh.
A roadmap to reduce system loss, implemented in February 2025 with Petrobangla and its distribution companies, cut losses in 2024-25 compared with the previous fiscal year, saving Tk 218.94 crore. The Bangladesh Energy Regulatory Commission’s restructuring of industrial and captive gas tariffs, alongside reduced retail gas prices, has contributed an additional Tk 98.22 crore in annual revenue.
Plans to strengthen the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) include the exploration and development of 150 wells and the purchase of three rigs. In the past year, BAPEX has explored, developed, and conducted workovers on 19 wells, adding 82 million cubic feet per day (MMCFD) of gas to the national grid and saving Tk 1,943 crore.
Further savings were recorded across infrastructure projects: Tk 193.29 crore from the Single Point Mooring (SPM) and double pipeline project; Tk 45.11 crore from the Chattogram-Dhaka fuel pipeline; Tk 31.04 crore from the Bakhrabad-Meghnaghat-Haripur Gas Transmission Pipeline Construction Project (Revision-1); Tk 27.64 crore from the Gas Transmission Company Limited’s Gas Station Installation and Renovation Project (Revision-1); Tk 9.75 crore from Eastern Refinery Limited (ERL); and Tk 8.24 crore from the Bogura-Rangpur-Saidpur gas line.
Workovers on seven wells in the Titas, Habiganj, Bakhrabad, and Meghna gas fields yielded Tk 6.55 crore in savings. Gas distribution network construction in Rangpur, Nilphamari, Pirganj, and surrounding areas saved Tk 3.34 crore, while Karnaphuli Gas Distribution Company Limited’s prepaid meter project saved Tk 2.16 crore. The development of a gas distribution network in the Faujdarhat-Sitakunda-Mirsharai area saved an additional Tk 1.33 crore.
Officials noted that the government’s approach combines fiscal discipline with long-term investment in domestic energy capacity, positioning the sector for greater efficiency and sustainability in the coming years.
