The recent increases in electricity and fuel prices are expected to have far-reaching consequences for consumers and businesses alike, according to S M Nazer Hossain, Vice President of the Central Committee of the Consumers Association of Bangladesh (CAB).
He said higher energy prices would increase production costs throughout the economy and ultimately place additional burdens on consumers.
"Electricity, gas and other forms of energy are the primary driving forces of the economy," he said. "Any increase in energy prices has both direct and indirect impacts on almost every sector."
According to Hossain, higher costs in industry, agriculture, transport and services are eventually passed on to consumers through increased prices of goods and services.
"As a result, the cost of living rises further and inflationary pressures intensify," he said.
He also questioned the timing of the latest tariff adjustments, arguing that increasing energy prices shortly after the formation of a new government sends a negative signal to businesses and investors.
"Instead of helping revive the economy and create an investment-friendly environment, higher energy prices may increase production costs and weaken the competitiveness of businesses," he said. Hossain criticised the authorities for raising tariffs without first addressing long-standing problems in the power sector, including mismanagement, irregularities, corruption, system losses and capacity payment issues.
"For years, CAB and several other organisations have been calling for reforms," he said. "Unfortunately, rather than resolving these structural weaknesses, the authorities have chosen to impose additional financial burdens on small and marginal consumers."
He also argued that many countries are expanding subsidy programmes to protect vulnerable consumers from rising energy costs and said Bangladesh should consider similar approaches.
Looking ahead, Hossain stressed the importance of renewable energy development.
"If adequate priority is not given to the development of renewable energy in the long run, the country may face new challenges in ensuring energy security and maintaining economic stability," he said.
He concluded that sustainable reforms, improved governance and greater investment in renewable energy are essential to ensuring affordable energy and reducing future vulnerabilities.
