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Dhaka Friday,  Mar 29, 2024

WB’s advice to cut subsidies on power, energy

EB Reporter

Bangladesh Finance Minister AMA Muhith has rejected the World Bank’s advice to cut subsidies for the power and energy sectors.

Muhith is heading the 15-member Bangladesh delegation at the WB-IMF Spring Meetings in the US capital.

The finance minister held a meeting with the WB’s Vice President for South Asia, Annette Dixon, on Friday, which discussed power and energy subsidies.

“The WB vice president has asked us to remove subsidies from power and energy. But I told her that’s not an option for a country like ours,” Muhith told reporters after the meeting on Friday (US time).

“I told her that we have slabs for power prices, which allows different prices for the high, mid and low income groups,” he said.

The government would rather increase its investments in the power sector to bring more people under electricity coverage, according to the finance minister.

“And for that, the government will increase the subsidies, if necessary. Our government has no plans to cut subsidies, thus depriving people of from electricity,” he added.

Bangladesh, however, is not spending any money on subsidies for oil since December as the international price has been falling.

In the wake of the slumping oil prices, the Bangladesh Petroleum Corporation (BPC) is making profits.

“As the prices almost halved, we are not counting subsidies since December last year,” BPC Chairman AM Badrudduja told bdnews24.com.

Bangladesh had to spend Tk 340 to 350 billion for importing oil in 2013-14 fiscal, which may come down to Tk 170 to 180 billion in the ongoing fiscal, according to the BPC chief.

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