Providing electricity and gas at "affordable" and "rational" prices is the major challenge for the country as it seeks to keep the industries competitive, said speakers at a seminar on Saturday.
They stressed the need for devising an efficient pricing mechanism and ensuring proper energy mix to reduce the dependence on expensive liquid fuel.
They also suggested use of less-expensive coal to make energy prices affordable.
The Ministry of Power, Energy and Mineral Resources (MPEMR) organised the seminar on 'Energy Pricing' at Bashundhara International Convention Centre in the city.
The seminar was part of a three-day programme to observe Power and Energy Week 2018.
Executive Director of the Policy Research Institute of Bangladesh (PRI) Ahsan H Mansur was the keynote speaker at the seminar chaired by energy secretary Abu Hena Md Rahmatul Muneem.
Partner and managing director of Boston Consulting Group (BCG) Zarif Munir moderated the seminar.
Speaking on the occasion, Mr Mansur underscored the need for extensive regional connectivity and cross-border energy trade for getting access to cheaper electricity from the neighbouring countries.
To underline his point, he said, "We are so dependent on electricity that life cannot continue without it."
Energy pricing is very important, he said, adding, it is "most contentious, most controversial and in many cases wrong in many countries."
Mr Mansur also placed the importance on deregulating the energy sector to ensure the private sector's engagement in electricity distribution and allow them to sell electricity directly to consumers.
It would be win-win for both the government and the consumers, he said.
Energy adviser of the Consumers Association of Bangladesh (CAB) Dr M Shamsul Alam said Bangladesh has no set and transparent policy to fix energy prices although such a policy exists in many countries across the globe.
Getting energy is a fundamental right guaranteed by the constitution, he said.
But the people are being deprived of the right as the administration is not free from 'corruption' and 'confrontation,' Mr Alam added.
Although the planning to develop energy and power got importance by the incumbent government compared to any other regime, the "unfair" and "illogical" cost escalation remains in place, he argued.
Energy pricing would not be fair and logical if such costs are not eradicated, he said.
Energy secretary said the people must have to consider whether less energy at less cost is better or more energy at higher cost.
Petrobangla chairman Abul Mansur Md Faizullah said the corporation is currently incurring a loss of around Tk 51.30 million daily and Tk 19.50 billion annually under the current pricing.
As the 'expensive' LNG (liquefied natural gas) has been injected into the supply system the sustainability of Petrobangla has become a major concern.
"Our policy, however, is to keep the blended gas price within the affordability of consumers," he said.
But the price would be raised gradually for different consumers in phases, he added.
Due to the injection of LNG into the country's gas supply system Petrobangla has to pay US$ 232,000 daily as terminal fee to the American company, no matter whether Petrobangla takes 100 million cubic feet per day (mmcfd) of re-gasified LNG or 500 mmcfd of re-gasified LNG, Mr Faizullah said.
Petrobangla has recommended the Bangladesh Energy Regulatory Commission (BERC) for fixing an affordable price to ensure sustainability of the corporation, he added.
Bangladesh Petroleum Corporation (BPC) chairman Mohammad Akram Al Hossain sought an introduction of a floating pricing formula in phases for petroleum products in line with their prices in the international market.
The BPC is currently incurring losses in petroleum products trading as it purchases oil from the international market at higher rates and sells it government-fixed subsidised prices locally, he said.
The corporation's loss is around Tk 8.54 per litre only against diesel trading, he added.
Bangladesh Power Development Board (BPDB) chairman insisted that the 'expensive' oil-fired power plants would be phased out in the coming years.
BERC member Mizanur Rahman stressed that less- cost primary energy resources should be opted for ensuring energy prices at affordable costs.
New innovations in nuclear power and renewable energy are needed to make sure that energy pricing is affordable, he said.
Former top official of state-run Gas Transmission Company Ltd (GTCL) was critical of the continuation of the Speedy Supply of Power and Energy (Special Provision) Act 2010.
Summit bagged the floating LNG terminal project under the Speedy Supply of Power and Energy (Special Provision) Act 2010 bypassing tender.
The law, which was adopted eight years ago as a quick fix solution, has a provision for awarding power and energy projects to sponsors bypassing tender and covers immunity to those involved in the quick-fix remedies.
Bangabandhu Chair of Asian Institute of Technology (AIT) Dr Joyashree Roy and some top government officials of different state-run entities also took part in the seminar.
Azizjst@yahoo.com