BB for power price hike
Bangladesh Bank (BB) has suggested the government to hike power price keeping separate tariff structure for the low-income group.
"The high cost quick rental option needed for urgent augmentation of power generation has heightened the urgency of increase in prices of energy, to keep budgetary subsidy burdens sustainable," said the Monetary Policy Statement (MPS) of BB released yesterday.
BB Governor Dr Atiur Rahman unveiled the half-yearly MPS at a press briefing held at the central bank's conference room.
The price adjustments will need to be selective, retaining subsidies to keep costs tolerable for low-income households, and also to keep agricultural and manufacturing output activities competitive, added the MPS.
The new monetary policy also proposed withdrawing subsidies for better off households and commercial establishments and even surcharging these users wherever appropriate.
BB governor's Senior Adviser Allah Malik Kazemi said, "Power is wasted unnecessarily in wedding ceremonies. We have recommended levying high power tariff on such misuses. But the low-income group does not have to bear heavy burden of power price hike."
BB Deputy Governors Nazrul Huda, Ziaul Hasan Siddiqui, and Murshid Kuli Khan responded to queries from journalists.