Bangladesh raises gas prices for power plants

(Reuters) - Bangladesh has raised gas prices for power plants by $0.0068 per unit to ease the subsidy burden, the energy ministry said on Tuesday, effective from this month.

The move comes as the government is set to raise power tariffs from March.

Under the new rates, state-run power plants, independent power producers and rental power plants will have to pay 14.75 taka per cubic meter of gas while captive power plants, small power plants and commercial power stations will pay 30.75 taka.

Prices of gas for transportation, fertilizer plants and households will not be changed.

Gas prices were last raised by an average of 82% in January last year.

Bangladesh has struggled to pay for imported fuel and gas because of dwindling dollar reserves since the Russian invasion of Ukraine, forcing the country to turn last year to the International Monetary Fund for a $4.7 billion bailout.

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