Leaders of the Bangladesh Steel Manufacturers Association (BSMA) on Tuesday urged the government not to increase electricity tariffs for the steel sector, citing mounting production costs driven by rising global fuel and raw material prices.
They made the appeal at a press conference held at the Economic Reporters’ Forum (ERF) auditorium in Dhaka, where industry leaders outlined a series of policy demands aimed at easing pressure on manufacturers.
In a written statement, BSMA President Mohammad Jahangir Alam called for reconsideration of what he described as excessive demand charges, additional VAT, and the existing policy of imposing extra costs based on power factor. He also demanded a gradual reduction and eventual removal of capacity charges, along with uninterrupted and quality electricity supply for industrial users.
Jahangir Alam, who also serves as Managing Director of GPH Ispat Limited, proposed introducing a special industrial tariff for high-voltage consumers. He further suggested allowing interest or adjustment facilities against security deposits paid by industrial users.
He stressed the need for a long-term, stable and investment-friendly energy policy to support industrial growth and sustain the country’s ongoing industrialisation process.
According to him, industrial electricity tariffs have increased by nearly 30 per cent in recent years, while gas prices in some cases have surged by up to 300 per cent. He also said capacity payments in the power sector remain a major burden, estimating that over Tk50,000 crore is paid annually in capacity charges.
BSMA Secretary General Dr Sumon Chowdhury said the steel industry and broader business community have been under pressure since the post-Covid period, mainly due to rising energy costs and weakening demand.
He noted that electricity accounts for around 30 per cent of total steel production costs. He added that while past tariff hikes under the previous government had already strained the sector, businesses now expect a more supportive approach from the current administration.
Dr Sumon Chowdhury said Bangladesh’s steel production capacity stands at around 12 million tonnes annually, but the industry is struggling due to falling demand. He said national steel consumption, which earlier stood at 7-7.5 million tonnes, has now dropped to around 4-5 million tonnes per year.
He attributed the decline partly to reduced government infrastructure spending and a slowdown in development activities, warning that sustained economic growth requires continued investment in infrastructure and industry.
Other speakers at the event included BSMA Founder President Sheikh Masadul Alam, CSRM Managing Director Md Shahjahan, and Salam Group Chairman Md Rezaul Karim.
