15 April 2024

Govt to adjust power tariff from March 1

Business Eye Report

Published: 20:13, 27 February 2024

Govt to adjust power tariff from March 1

State Minister for power Nasrul Hamid today said the government has decided to increase power tariff from March 01 to minimize government subsidy to the sector.

"Those who consume up to 50 units will see a price hike of 34 paisa per unit. For those consuming above 50 units, the increase will range from 34 to 70 paisa (per unit). The new power tariff will come into effect from next month (March)," he told journalists at his ministry conference room.

Nasrul Hamid said that price of electricity usually fluctuates depending on the fuel price globally, adding, "So we have to synchronize with that, there is no other way. We are going to adjust a very small amount of power tariff that is 34 paisa.... There are 1.40 crore life line customers. They pay bill at Tk. 4 (per unit), those who are above, are charged Tk. 7. But on average our production cost is Tk. 12 per unit."

Additionally, the price of gas used in electricity production has been raised by 75 paisa per unit, he added.

Nasrul said that the government has been giving a major portion as subsidy, adding, "Subsidy was increased more due to dollar exchange rate variation. The government gives Tk. 43,000 crore as subsidy annually."

"A gazette notification to this effect is set to be published soon," he added.