Government Spent Tk 43,196cr in Power Subsidies in FY26: Energy Minister

Dhaka, Bangladesh || Friday, 13 November 2026 || 28 Kartik 1433

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Government Spent Tk 43,196cr in Power Subsidies in FY26: Energy Minister

Published : Friday, 13 November, 2026 at 10:28 AM, Count : 19

Government Spent Tk 43,196cr in Power Subsidies in FY26: Energy Minister

The government provided Tk 43,196 crore in subsidies to the power sector during the 2025-26 fiscal year to cover the gap between electricity generation costs and wholesale selling prices, Energy Minister Iqbal Hassan Mahmood told parliament.

In response to a question from BNP reserved-seat MP Farida Yasmin, the minister said the average cost of electricity generation stood at Tk 11.16 per unit in FY2025-26, while distribution companies sold electricity to consumers at an average rate of Tk 10.40 per unit.

During the same fiscal year, the government purchased electricity from private power plants at an average cost of Tk 13.20 per unit.

Replying to a question from Jamaat-e-Islami MP Syed Zainul Abedin, the minister said the government had kept fuel prices below market levels through subsidies to ensure affordability for consumers. Consequently, Bangladesh Petroleum Corporation (BPC) incurred losses of approximately Tk 27,669.79 crore between March and October 25 this year.

Despite the losses, BPC continued importing fuel over the past eight months using its own funds, as domestic fuel prices remained significantly lower than international market rates, he said.

The minister added that any further decline in international fuel prices would be reflected in domestic prices in accordance with the government's automatic fuel pricing guideline.

Responding to a question from BNP MP Md Ashraf Uddin, Iqbal Hassan Mahmood said Bangladesh's annual demand for stone ranges between 25 million and 30 million metric tonnes. However, domestic mines currently meet only around 5.5 per cent of the total demand.

He said Maddhapara Granite Mining Company currently produces 1.65 million metric tonnes of stone annually. A feasibility study for establishing a new mine has already been completed. If the proposed project is implemented, annual domestic production could increase to 4.95 million metric tonnes.

In response to a question from BNP MP Khayrul Kabir Khokon, the minister said imported liquefied natural gas (LNG), after regasification, currently accounts for around 35 per cent of Bangladesh's total gas supply.

He explained that the government has to import LNG at high prices to meet domestic demand, while consumers continue to receive gas at regulated rates. Rising international LNG prices have further increased import costs, but the additional expenses cannot be fully passed on to consumers.

Gas prices are determined by the Bangladesh Energy Regulatory Commission through a formal process, which takes time. As a result, the government provides subsidies to cover the difference between import costs and the prices charged to consumers.

According to the minister, the government provided Tk 14,600 crore in subsidies to the LNG sector during FY2025-26.

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