Energy prices to go down, if global prices continue to fall: Tawfiq-E-Elahi

If fuel prices continue to fall in the international market for a few more months, gas and electricity prices will also follow a downward adjustment in the local market, said Dr Tawfiq-E-Elahi Chowdhury, Power, Energy and Mineral Resources Affairs Advisor to the prime minister.

"Gas and oil prices have recently dropped on the international market, but the question remains – how long will this trend continue? If it persists for a few months, we will of course adjust prices in the local market," he told reporters on Thursday at a publishing ceremony of a book, titled "Empowering Bangladesh", at the capital's Bidyut Bhaban.

"But it is difficult to trust how long this downward trend will continue in the international market," he further said on the occasion, which was organised by the Forum for Energy Reporters Bangladesh.

On 18 January, the Energy and Mineral Resources Division hiked the gas price by a maximum 179%, citing the energy price volatility in the global market and its impact on Bangladesh as it imports LNG.

Since the beginning of this year, retail electricity price has also been hiked three times by 15%.

At present, the price of spot market LNG is $12 per mmBtu, which reached $69 per mmBtu at this point last year.

Along with energy price volatility in the global market, foreign currency has also been a major crisis for Bangladesh in importing fuel to produce electricity and run industries.

However, Tawfiq-E-Elahi Chowdhury said that the country is now gradually overcoming the dollar crisis.

"Our exports are currently increasing, and we are also seeing a rise in remittances, by the grace of God. As a result, we are gradually overcoming the imbalance of external accounts," he said.

When discussing the power supply situation during the ongoing irrigation and summer season, he said that the government has increased gas supply to gas-powered plants by resuming LNG imports from the spot market. This move has helped to meet the demand for electricity.

"If the Russia-Ukraine war situation does not impact the global energy market in future, the electricity supply situation will remain as good as it is now," said the Advisor to the Prime Minister.

Local and international energy experts, policy think tanks, and consumer rights groups have long been demanding the repeal of the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 to reduce the burden of additional expenditure on the government.

This act empowers the government to undertake projects through unsolicited means, bypassing the competitive bidding process, and provides indemnity for doing so.

In response to a question as to when the act will be repealed, he stated, "We are fortunate to have the Power and Energy Special Provision Act. Without this act, we would be unable to take action even in times of war."

He further added, "We will abolish this act once stability comes to the international and local energy market."