The government has cut the price of furnace oil, a key element of electricity generation, by at least Tk 16 to Tk 18 per liter, but is has no plans to cut power price rather intends to increase the price in future.
The price of electricity was primarily increased as a result of supplying power to the oil-based power plants but only 3,000 MW of electricity is being generated by the power plants.
This has affected the pricing of the country's entire output of some 8,000 MW. As the government is buying electricity at Tk 18 to Tk 20 per unit from the private producers whereas, the price of electricity generated by the gas-based public power plants is Tk 5 to Tk 6 per unit.
According to Bangladesh Power development Board (BPDB), the government has so far operated 43 oil-fired power plants having capacity to generate 3,000 MW of electricity.
Although some 26 power plants are importing their fuel from the global market at cheaper rate the government has to plans to cut electricity price.
Now while the all furnace oil user are seeking permission to import oil from the global market the government has cut furnace oil price instead of power price.
State Minister for Power and Energy Nasrul Hamid told the Daily Observer, "No we have no plans to cut power price rather the price will be adjusted with the international rate."
Last year the PDB (Power Development Board) purchased 6.48 billion units of power from the rental plants. As against this, the expenditure stood at Tk 83.96 billion. Per unit cost of production was Tk 12.96 and it was sold at Tk 4.70 per unit. On this count, PDB had to incur a loss of Tk 59.51 billion. PDB thought that if most of the rental and quick rentals were closed this financial year, losses would come down. But because of the extension of most of the rentals and quick rentals, losses would exceed Tk 70 billion.