Adviser for fuel price hike

Energy Adviser Tawfiq-e-Elahi Chowdhury yesterday hinted that the government might raise fuel prices any time to cut down on losses for selling fuel at subsidised rates.
"We have limitations in regard to budgetary spending on subsidies. We have to keep the subsidies within limit for our own sake," he told reporters on the sidelines of a seminar on renewable energy in the capital.
If the subsidy to petroleum fuel continues, it would not be possible for the government to allocate funds for other important sectors such as education and human development, said the energy adviser to the prime minister.
He said the government is incurring a loss of Tk 18 on sale of diesel per litre. “So, fuel prices have to be raised for the sake of price adjustment.”
The government hiked the prices of diesel, petrol, octane, kerosene and furnace oil the last time in December last year.
In the current fiscal year, the government plans to spend Tk 3,200 crore on subsidy in the energy sector.
Power prices are also likely to be increased soon.
Some distribution companies have already submitted proposals to Bangladesh Energy Regulatory Commission to raise the tariff at retail level, saying they are making losses despite the fact that the regulator hiked the tariff four times in the last one year.
The adviser said some power distributors face losses because they have miscalculated the tariffs before the last power price hike in September.
They have applied to the commission to raise the tariffs at retail level, he said.
In September this year, the commission increased the retail power tariff by 15 percent to Tk 5.75 per unit amid opposition from consumers.
On the Phulbari coal mine project, the adviser said the government has not yet given permission to Asia Energy or GCM Resources to mine or extract coal from there, reports UNB.
The power division organised the seminar on “Identification of areas of cooperation in renewable energy between Bangladesh and India.”