Prime Minister’s Information Adviser Dr Zahed Ur Rahman has said the recent fuel and electricity price hike is unlikely to cause significant disruption in Bangladesh’s market, despite concerns over its timing ahead of the national budget.
Speaking at an emergency briefing on energy and power at the Press Information Department conference room in the Secretariat on Saturday, he said the government does not expect the latest adjustment in fuel and electricity prices to have a major impact on overall market conditions. Information and Broadcasting Minister Zahir Uddin Swapon was also present.
Responding to questions about the decision to raise energy prices before the budget session, the adviser said periodic adjustments are unavoidable in order to manage pressures within the energy sector and the wider economy.
He noted that prices of essential goods, particularly vegetables and fresh produce, often increase around the budget period. However, he said current market trends appear more stable than in previous years and suggested that recent price movements indicate a reversal of earlier upward pressure.
Dr Zahed Ur Rahman said rising subsidy costs have placed a growing burden on public finances. He argued that higher spending on fuel and electricity subsidies reduces the government’s capacity to invest in development projects, healthcare, education and social protection programmes.
He pointed to ongoing initiatives such as farmer cards and family cards, saying adequate funding must be maintained for these schemes and other safety-net programmes. While acknowledging that energy price increases are unpopular, he said the government must balance consumer protection with the financial sustainability of the power and energy sectors.
The adviser said vulnerable groups would continue to receive protection from the impact of higher energy costs. “We have not increased electricity or fuel prices for vulnerable people,” he said, adding that many low-income households would continue to receive government allowances and support.
He said a significant number of families are expected to benefit from the family card programme under the upcoming budget, alongside continued assistance through other social protection measures, including Trading Corporation of Bangladesh (TCB) programmes.
Dr Zahed Ur Rahman also said the Ministry of Commerce would closely monitor the market to prevent unjustified price increases following the latest energy price adjustment. He added that the government would continue taking action against any attempts to exploit the situation through excessive pricing.
