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Nasrul: Tk14,000 crore subsidy required if gas price not hiked

  • Published at 04:05 pm June 9th, 2019
Nasrul Hamid
File photo of State Minister for Power and Energy Nasrul Hamid Dhaka Tribune

The government has already spent Tk14,000 crore for LNG imports

State Minister for Power and Energy Nasrul Hamid has said the government would require an additional  Tk14,000 crore subsidy for Liquefied Natural Gas (LNG) imports if the gas price was not hiked again.

“The government has already spent Tk14,000 crore for LNG imports, and another Tk14,000 crore will be required. If we cannot adjust the gas price now, the amount of subsidy will rise further,” said Nasrul at a press briefing at his office in the secretariat on Sunday, the first day after Eid vacation.

According to the minister, about 600 million cubic feet of LNG had been added to the national grid as of now, and another 600 million cubic feet would be added later.

“We have started importing LNG from August last year, which is highly expensive. We do provide a subsidy for local gas right now, as the gas has been supplied at a much lower rate to consumers than the actual rate. We have already given Tk5,000-6,000 crore subsidy in the current fiscal year, and another Tk7,000-8,000 crore may be required in the next budget if the price is not adjusted,” he added.

However, the state minister said if the price is adjusted, the amount of subsidy would remain the same as the previous fiscal year.

Regarding the budget for the next fiscal year, the minister said the power and energy sector may get a budget allocation of Tk29,000-30,000 crore, including around Tk26,000 crore alone for power sector.