Bangladesh’s independent power producers face financial strain following the Power Development Board’s decision to cut the heavy fuel oil service charge from 9.04% to 5%. Already dealing with Tk3,662 crore in unpaid dues, IPPs warn this may hinder fuel imports, leading to intensified power shortages during summer. The government expects to save Tk350 crore through this measure as part of efforts to cut subsidies, but industry leaders fear supply disruptions. The Bangladesh Petroleum Corporation may step in to supply fuel, but limited storage and jetty capacity could pose challenges. Power demand is projected to rise by 4,000 MW during Ramadan, bringing peak demand to 16,000 MW. The total outstanding dues in the power sector amount to Tk19,479.74 crore, affecting various energy sources, including gas, coal, and renewable power. While the government has allocated Tk8,000 crore for March payments, concerns persist over fuel availability and stable electricity supply.
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