Govt spends Tk43,196cr on power subsidies in FY2025-26: Energy minister

Energy Minister Iqbal Hassan Mahmood told parliament that the government covers the gap between the cost of buying electricity and its wholesale selling price through subsidies. In fiscal year 2025-26, the government provided Tk43,196 crore in subsidies to the power sector.

Responding to a question from BNP reserved-seat MP Farida Yasmin, the minister said the average cost of electricity generation in FY2025-26 stood at Tk11.16 per unit, while electricity was sold to consumers through distribution companies at an average rate of Tk10.40 per unit.

During FY2025-26, the government purchased electricity from private power plants at an average cost of Tk13.20 per unit.

Replying to a question from Jamaat-e-Islami MP Syed Zainul Abedin, the minister said the government had fixed fuel prices at subsidised rates to keep them affordable for consumers. As a result, Bangladesh Petroleum Corporation (BPC) incurred losses of about Tk27,669.79 crore between March and October 25 of the current year.

Despite those losses, BPC has continued fuel imports over the past eight months using its own funds because domestic fuel prices remain significantly lower than international market prices, he said.

The minister added that if fuel prices fall further on the international market, domestic fuel prices would be adjusted in line with the government's automatic fuel pricing guideline.

In response to a question from BNP MP Md Ashraf Uddin, the energy minister said Bangladesh's annual demand for stone ranges between 25 million and 30 million metric tonnes. However, domestic mines currently meet only about 5.5% of that demand.

He said the Maddhapara Granite Mining Company is currently extracting 1.65 million metric tonnes of stone annually. A feasibility study for a new mine has been completed and, if implemented, total annual production could rise to 4.95 million metric tonnes.

Responding to a question from BNP MP Khayrul Kabir Khokon, the minister said around 35% of the country's total gas supply currently comes from imported liquefied natural gas (LNG) after regasification.

He said LNG has to be imported at high prices to meet demand, while consumers continue to receive gas at regulated rates. Rising global LNG prices have further increased import costs, but those costs cannot be fully passed on to consumers.

The Bangladesh Energy Regulatory Commission determines gas prices through a formal process, which takes time. As a result, the government covers the gap between import costs and consumer prices through subsidies.

According to the minister, the government provided Tk14,600 crore in subsidies to the LNG sector during FY2025-26.