Steel manufacturers in Bangladesh have expressed serious concern over the recent increase in electricity tariffs, saying the move will significantly raise production costs and deepen challenges already facing the sector.
The Bangladesh Steel Manufacturers Association (BSMA) warned that the revised power tariff is likely to increase steel production costs by approximately Tk3,650 per tonne. Industry leaders cautioned that the added cost burden will ultimately be transferred to consumers, potentially driving up prices in construction, housing, and infrastructure projects nationwide.
The concerns were raised at a press conference held on Monday at the Zahur Hossain Chowdhury Hall of the National Press Club in Dhaka.
During the briefing, the association urged the government to reconsider the decision and ensure an affordable and stable energy supply for industrial users.
BSMA President Jahangir Alam, Secretary General Sumon Chowdhury, and other senior officials of the association were present at the event.
Industry representatives said the higher electricity cost would reduce the competitiveness of local steel manufacturers in both domestic and international markets. They also warned that the increased financial pressure could discourage new investment in the sector at a time when industrial expansion is crucial.
They further cautioned that rising production costs may have wider economic implications, including potential job losses and a slowdown in construction and infrastructure development activities.
Calling for an urgent policy review, steel sector leaders urged the government to adopt supportive measures to protect the industry’s sustainability and ensure continued growth of one of the country’s key manufacturing sectors.
