Bangladesh has been paying a high amount of ‘capacity charge’ to the power plants that are lying idle throughout the year without producing electricity.
The high-capacity charge payments, along with the rising fuel price, created budgetary pressure. To clear off the pressure, the government has been raising the price of electricity and fuel. Since 2023, the government has raised the power price three times in two months, twice in February. Consumers are forced to pay at least 15% more for electricity compared to December 2022.
Inflation was registered at 8.8% for the year ended February 2023 by the Bangladesh Bank. However, the actual scenario at the market indicates that the prices of goods are rising far above that rate.
