Finance Adviser Salehuddin Ahmed on Monday assured citizens there would be no immediate increase in electricity prices, citing the need to provide public relief amid persistent high inflation.
Presenting the national budget for FY2025-26, Ahmed stated: “Ensuring adequate energy supply while maintaining affordability is crucial for both citizens’ welfare and economic stability. Considering current inflationary pressures, we’ve decided in principle against any power tariff hike for now.”
The adviser revealed the power sector currently receives subsidies equivalent to 1% of GDP – a substantial burden. To address this, the government has formulated a 10% cost-reduction plan for power generation that could save over Tk11,000 crore in electricity subsidies if implemented successfully.
Key measures include reviewing existing power purchase agreements and initiating comprehensive energy audits. On energy security, Ahmed outlined plans to augment domestic gas supply by 648 million cubic feet this year, with an additional 1,500 million cubic feet targeted from local wells by 2028.
“To achieve these production targets, we’re strengthening BAPEX’s exploration capacity through dedicated budgetary allocations,” the adviser added, emphasizing the government’s dual focus on energy affordability and supply security.