Government to get powers to change fuel, electricity prices as cabinet passes amendment

The cabinet has approved a proposal to amend the law to give the government powers to raise or reduce price of fuel and electricity directly in 'special circumstances'.

The cabinet’s approval came on Monday amid turmoil in the energy market over the Russia-Ukraine war.

When the government raised fuel prices in August, the decision was challenged in the High Court as only the Bangladesh Energy Regulatory Commission, or BERC, had the powers to adjust energy prices following a process set by the law.

The government then moved to change the law to avoid complications, said Cabinet Secretary Khandker Anwarul Islam.

The BERC faces some problems, for example, Anwarul said, sometimes it cannot coordinate properly on an urgent basis in case of immediate needs.

Asked whether the power, energy and mineral resources ministry would be able to change fuel prices any time, he said, "The BERC will do it at normal times, the ministry will do it in special circumstances."

He said the government is also checking whether private companies should be allowed to import all types of fuel and sell them in the domestic market.