Home
+
Published : 13 Apr 2026, 10:36 PM
The government has formed a cabinet committee to prepare proposals for adjusting wholesale and retail electricity tariffs in response to the ongoing global energy situation and rising pressures in the sector.
The Cabinet Division announced the decision in a notification issued on Apr 9.
The committee has been formed at a time when the legal framework for determining electricity and energy prices has undergone multiple changes in recent years.
Finance Minister Amir Khosru Mahmud Chowdhury will lead the six-member committee, which also includes Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood Tuku, Commerce Minister Khandakar Abdul Muktadir, the secretary of the Finance Division, the secretary of the Power Division, and the secretary of the Energy and Mineral Resources Division.
According to the notification, the committee will review the current energy situation in detail and submit specific proposals on adjusting wholesale and retail electricity tariffs for consideration at a cabinet meeting.
The panel may co-opt additional members if needed, hold meetings as required, and will receive secretarial support from the Power Division.
At the end of 2022, an amendment to the Bangladesh Energy Regulatory Commission (BERC) Act introduced Section 34(A), allowing the government to adjust electricity, gas and fuel prices through executive orders without public hearings.
In early 2023, the government used this provision, citing the need for quicker decision-making.
However, during the interim government period, an ordinance issued on Aug 27, 2024 repealed Section 34(A), restoring the requirement for public hearings and returning pricing authority to BERC.
As a result, after about one and a half years, the authority to increase or decrease prices of gas, electricity and other fuels reverted to the commission.
Meanwhile, BERC has been setting monthly liquefied petroleum gas (LPG) prices since Apr 2021, replacing the earlier system where private companies determined prices independently.
The current system aligns domestic prices with international market rates through monthly adjustments.
During the interim government period, pricing authority for Jet A-1 fuel and furnace oil was also transferred to BERC, as per a gazette issued on Sept 15, 2024.
Previously, these prices were set by the Bangladesh Petroleum Corporation (BPC).
However, diesel, octane and petrol prices continue to be set administratively by the government, with BPC implementing the decisions.
An automatic pricing mechanism linked to international markets has been introduced for these fuels, although final control remains with the government.
In recent months, the government has continued to issue separate notifications to fix consumer-level fuel prices.
Following the formation of the new parliament, 133 ordinances issued during the interim government period were sent to a special committee.
These ordinances must be passed within 30 days of the session’s start to retain legal validity.
Among them are amendments related to BERC, the Bangladesh Gas Act, and the repeal of special provisions for quick enhancement of electricity and energy supply.
