Govt spends Tk43,196 crore on power subsidies in FY26: Energy minister

Energy Minister Iqbal Hassan Mahmood has told parliament that the government spent Tk43,196 crore in subsidies on the power sector during fiscal year 2025-26 to cover the gap between electricity procurement costs and wholesale selling prices.

Responding to a question from BNP reserved-seat MP Farida Yasmin, the minister said the average cost of electricity generation stood at Tk11.16 per unit in FY2025-26, while electricity was supplied to consumers through distribution companies at an average rate of Tk10.40 per unit. The government purchased electricity from private power plants at an average cost of Tk13.20 per unit during the same period.

Replying to a question from Jamaat-e-Islami MP Syed Zainul Abedin, Mahmood said the government had kept fuel prices subsidised to make them affordable for consumers. Consequently, the Bangladesh Petroleum Corporation (BPC) suffered losses of approximately Tk27,669.79 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 domestic fuel prices would be adjusted in accordance with the government's automatic fuel pricing guideline if international prices decline further.

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

He said Maddhapara Granite Mining Company currently produces 1.65 million metric tonnes of stone annually. A feasibility study for a new mine has been completed, and its implementation could increase total annual production capacity to 4.95 million metric tonnes.

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

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

The Bangladesh Energy Regulatory Commission (BERC) determines gas prices through a formal process that requires time. Consequently, the government provides subsidies to cover the gap between LNG import costs and the prices charged to consumers.

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