Bangladesh's Gas, Power Sectors Face Multiple Crises
The gas and electricity sectors in Bangladesh are facing multiple problems due to declining domestic production, reduced imports of liquefied natural gas (LNG), and high prices. The government owes Tk 440 billion to private power plants and is struggling to provide massive subsidies.
According to analysts, importing fuel at higher prices is putting additional pressure on foreign-exchange reserves. They recommend that the government temporarily incur higher costs for electricity supply, which would have a broader impact on the economy but also generate higher tax revenues for the government.
The main concern is the next two months, September and October, when temperatures will not fall significantly, resulting in high demand for electricity. Businesspeople are advising the government to run oil-fired power plants during this period to ease pressure on gas supplies.