The Bangladesh Power Development Board (BPDB) has submitted a proposal to increase the wholesale price of electricity without cutting off the remnants of the flawed application for increase in gas price. The Bangladesh Energy Regulatory Commission (BERC) has returned the gas as it was defective as usual.

Commission member Mohammad Bazlur Rahman confirmed this information to Barta24.com. He said BPDB has submitted a proposal to increase the wholesale price. Proper legal procedures were not followed when submitting the proposal. So they have been asked to make a full proposal. Responding to a question on what kind of deviation has taken place in the law, he said that a three-year audit report has to be submitted along with the proposal, one-year estimated income-expenditure account has to be submitted, and what kind of impact can be had on consumers if prices are increased as per the proposal. These reports have to be submitted. Some more reports have to be submitted along with these, which were not with the application. Therefore, BPDB has been asked to submit a full proposal without rejecting or accepting the application.

BPDB is the sole buyer of electricity, buying electricity from its own generation as well as from imported and privately owned power plants. It has been selling all the electricity to 5 distribution companies at wholesale prices. And they are distributing in the urban areas of Mymensingh, Sylhet and Chittagong divisions.

Saiful Hasan Chowdhury, director of BPDB's public relations directorate, told Barta24.com that electricity was being sold at a lower price than the cost of production. Due to this BPDB is going with losses. So a proposal for wholesale price adjustment has been made.

It has been proposed to increase the rate by how much. In response to such a question, he said, "We have not proposed any specific price increase." We have said in the proposal that we are already incurring some losses as we are selling at a lower price than the purchase price. The recent rise in fuel prices has pushed up production costs. If the prices are not adjusted in the current situation, the power development board will lose Tk. 30,000 crore in 2022. So price adjustment has been proposed. In addition, if the price of gas increases, the losses will increase further. BERC has also been asked to adjust the price of gas.

BERC is the legal body for finalizing prices. After receiving the application, they first check and select. If the application is appropriate, a public hearing is held by meeting the commission. Then the price is announced. When the wholesale price goes up, the distribution companies submit proposals to increase the retail price based on it. The primary consideration of the application is that the concerned institution has to prove on paper the rationale of increasing the price. If the price does not increase, the effect will have to be calculated. Many times in the past, BERC has refrained from raising prices by recommending subsidies to the government. Last March, the price per unit was increased from Tk. 4.77 to Tk. 5.17 in March 2020.

Mohammad Hossain, director general of Power Cell, a development and research institute of the power department, told Barta24.com that last year there was a wholesale loss of around Tk. 9,000 crore. This time the losses will increase further due to the increase in oil prices.

On the other hand, the gas distribution companies have submitted ridiculous proposals to the commission. In the current context, they have no chance to propose to increase the price of gas. First Petrobangla has to increase the wholesale price. Then the companies will come up with a proposal to increase the retail price to raise that money. This is what has happened in the past. Petrobangla gave a letter to increase the price of gas stating that the losses are being multiplied due to the increase in the price of LNG. The BERC rejected the proposal as the application was not appropriate. At the same time, distribution companies submitted proposals to increase prices by 117 percent. For this reason, BERC has returned the applications.

Energy expert Professor Shamsul Alam told Barta24.com that efforts are being made to fool the people. Bangladesh is importing LNG (liquefied natural gas) from long term contracts and the spot market. The price of gas bought from the spot market has increased by 5-6 percent. It is believable that the price of 100 percent gas has to be increased by 117 percent as the price has increased by 5-6 percent! They are showing calculations with manipulated accounts, these calculations are not realistic. We are in favor of not importing that amount of LNG if necessary. People's sufferings have increased after the rise in fuel prices. In this situation, an increase in gas price is not desirable in any way. At the moment, our economy is not ready for either subsidy increases or price increases. Instead, that amount of LNG import should be reduced by rationing. If the price of gas increases, the issue of increase of electricity price will also come to the fore. We think there are many options besides raising the price of gas and electricity.

Prime Minister Sheikh Hasina has called for more Swedish investment in economic zones and information & communication technology (ICT) in Bangladesh. She said, we want more investment from Sweden in ICT and economic areas of Bangladesh.

She said this when a Swedish delegation led by CEO and President of Swedish clothing company H&M Helena Helmerson paid a courtesy call on the Prime Minister on Tuesday at Ganabhaban, the Prime Minister's official residence.

Prime Minister's Press Secretary Ihsanul Karim said this.

The prime minister said that the Awami League government wants to expand the export basket by diversifying the export products.

She said, Bangladesh has its own economic policy. Apart from creating employment, there are also plans for poverty alleviation, food security and health care.

Referring to the steps taken to combat climate change, the Prime Minister said that our government is effectively dealing with the effects of climate change. Governments are very aware of the impact of climate change. This is being worked on.

The Prime Minister said that the government is working with highest priority to ensure women's empowerment and gender equality. She also appreciated the Swedish move of not canceling any purchase orders from Bangladesh during the bad times arising out of the Covid-19 pandemic despite the global outbreak of the coronavirus.

On the other hand, H&M President Helena Helmerson said that they have a special relationship with Bangladesh.

She said, we have been doing business with Bangladesh for the last three decades. We want to take business with Bangladesh further.

Helena Helmerson lauded the Prime Minister's leadership for the remarkable socio-economic development of Bangladesh and for ensuring the country's progress by successfully controlling the Covid-19 situation.

At this time, Prime Minister's private industry and investment advisor Salman Fazlur Rahman, Principal Secretary of the Prime Minister Tofazzel Hossain Mia, Swedish Ambassador to Dhaka Alexandra Berg von Linde and H&M Chief Financial Officer Adam Carlson were present.

The budget session of the 11th JS is starting today (Wednesday). Finance Minister AHM Mustafa Kamal will place the national budget for the next financial year on June 1.

A press release of the JS Secretariat has informed that the session will begin under the chairmanship of Speaker Dr. Shirin Sharmin Chowdhury at 5 PM today.

President Mohammad Shahabuddin convened the 23rd session of Parliament under the powers given to him under Article 72 Clause (1) of the Constitution.

Finance Minister AHM Mustafa Kamal will present the national budget for the next financial year on June 1. The proposed budget is expected to be passed in Parliament on June 25.

An official of the Ministry of Finance said that the possible budget size will be Tk. 761,785 crore in order to control inflation and maintain high GDP growth rate.

The government is currently targeting a growth rate of 7.5% in the next fiscal year with inflation at around 6.5%. The total investment target for next year will be 33.8 percent of GDP.

Commerce Secretary Tapan Kanti Ghosh said, Bangladesh may face various hurdles in the export of readymade garments after LDC (Least Developed Countries).

He said, 'So, we need to ensure some policy support to be competitive in the global market as well as continue the trend of export of readymade garments.

He said these things in a workshop titled 'Study on Policy Support and Incentives Before and After LDCs Graduation for RMG Sector' at Bangladesh Foreign Trade Institution (BFTI)’ on Sunday.

Under the chairmanship of BFTI chief executive officer Zafar Uddin, Vice Chairman of Export Development Bureau (EPB) AHM Ahsan also spoke in the program and BFTI Director General Md. Obaidul Azam moderated the workshop.

Md. Jafar Uddin said that the best use of incentives and subsidies in RMG exports should be ensured before LDC graduation.

BERC (Bangladesh Energy Regulatory Commission) could not amend the petroleum regulations even after four months. Bangladesh Petroleum Corporation (BPC) is doing the price coordination formula with the international market taking the opportunity of this laxity of the commission.

But in the inter-ministerial meeting (December 14, 2022) it was decided that BERC will determine the price of oil. In that meeting, it was decided to speedily approve the BERC regulations subject to amendment pending for a decade.

In that meeting, the then Senior Secretary of Energy and Mineral Resources Division gave his opinion on determining the price of oil and gas according to the international market price. The minutes of the meeting showed that after the opinion of the Secretary, BERC brought forward the model for determining the price of LP gas every month. The pricing of oil and gas is discussed according to the same model. If possible every 3 months re-fixation of rates is decided. For this, the need to change the draft regulations is highlighted.

BERC is supposed to fix the prices of all types of fuel as per the BERC Act. Although prices are fixed in the case of electricity and gas, prices are being fixed by executive order as the petroleum rules are not finalized. BERC submitted the approval of Petroleum Products Retail Tariff Regulations, 2012, Petroleum Products Storage Marketing and Distribution Regulations, 2012, and Petroleum Products Transport Tariff Regulations, 2012, but the ministry kept it on hold for a decade. According to the decision of the inter-ministerial meeting, the regulations were sent back to BERC for amendment in January.

When sent to BERC, the Abdul Jalil Commission was at the end of its term. The Jalil Commission left it for the new commission without taking up the task. Even if the new commission comes, it does not show much attention. Many regulations are in the freezer. According to Commission sources, Deputy Director (Tariff) Kamruzzaman has been given the responsibility; he is yet to prepare the draft.

BERC Member (Administration, Finance and Law) in reference to BPC's activities on the ground of BERC's delay. Muhammad Yamin Chowdhury's attention was drawn. He told Barta24.com that the price can be done by any organization. Whether BPC does it or we do it is not a big issue here.

Chairman of BERC Nurul Amin told Barta24.com, after I joined, I ordered to prepare the regulations in the light of the working papers of the ministry. But not presented till now. In response to the question of when it can be finalized, he said, we want to send it to the ministry by May.

Energy and Mineral Resources Division sources said that fuel oil will be sold and bought at the international market rate from next September. If the international market increases, it will increase, and if it decreases, it will decrease. Adjustments will be made every two or three months. It is only a matter for the government now, the terms of the IMF loan include withdrawal of subsidies so the government is very active.

BERC and BPC have been at loggerheads since the beginning on the issue of oil prices. BPC and the Ministry do not want to miss the issue. That is why regulations are suspended. Now when the opportunity has come forward it is going to be missed due to laxity of BERC.

Senior Vice Chairman of Cab Energy Affairs Advisor Shamsul Alam told Barta24.com that the BPC and the ministry have been illegally fixing oil prices for so long by hanging the regulations. They still want to hold onto it. And those assigned to BERC will not perform legal duties. He does not want to do it, he is working in obedience to the government. Public interest is being undermined, unscrupulous businessmen are looking after interests and nothing is going according to norms. Government takes dividends from companies.

A BERC official told Barta24.com, on condition of anonymity, that the regulations do not require much amendment. The ministry could have done what is supposed to be done, here only a line can be added that the price can be adjusted after two or three months. Basically, if the regulations submitted in 2012 come forward, the ministry will be embarrassed, hence this drama.

Last January, Additional Secretary of Energy and Mineral Resources Division, Khalek Mallick told Barta24.com that it has been decided to bring some additions to the regulations of BERC. BERC will also determine the price of fuel oil. In that light, it was decided to amend the draft regulations in the meeting.

BERC has been fixing LPG rates every month. Costs and commissions of importers have been finalized through public hearing. Now only the gas price fluctuates every month. That is, if the price increases in the international market, the product price increases, if it decreases, that part decreases. A similar approach is being considered for diesel petrol as well. Operating costs including shipping costs and import costs will be separated. Operating cost will remain unchanged and after 3 months the country's market price of fuel oil will be more or less in line with the international market rate. It has been decided to finalize the pending BERC regulations with amendments so that BERC can function within the legal framework.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid said, we are thinking about opening the fuel oil market. There can be private companies as well as government companies. Trying to figure out a method, if the price increases in the international market, it will increase in the country, and if it decreases, it will decrease in the country. The government no longer wants to subsidize fuel oil.

According to BPC data, the demand for fuel oil in the country was 62 lakh 99 thousand 730 metric tons in the financial year 2020-21. Sector basis fuel has been used the most in the transport sector, 39 lakh 63 thousand 725 metric tons equal to 62.92 percent were used in that financial year. Next, there is 9 lakh 75 thousand 604 metric tons in the agriculture sector; the demand in the electricity sector was 6 lakh 52 thousand 66 metric tons. While 4 lakh 50 thousand 437 metric tons in industry; 97 thousand 600 tons in households and 1 lakh 60 thousand 298 metric tons in other sectors.