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Energy Subsidies in Bangladesh

The GSI’s program of work in Bangladesh undertakes research and policy engagement on subsidies for fuel consumers and renewable energy.


  • Reduce overall fossil fuel subsidy expenditure
  • Improve the fair social distribution of subsidy expenditure
  • Ensuring that subsidy reforms are gender sensitive and promote gender equality
  • Increase clean energy access and use, particularly among poorer households

In carrying forward this work, the Global Subsidies Initiative has collaborated primarily with the Bangladesh Institute of Development Studies (BIDS).

Reports: Making the Switch: From fossil fuel subsidies to sustainable energy

Removal of consumer subsidies can lead to carbon emission reductions (6 to 8 per cent by 2050 globally), Reductions that can be improved further with a switch or a "SWAP" towards sustainable energy. This report describes the scale and impact of fossil fuel subsidies on sustainable development. It describes the SWAP concept to switch savings made from fossil fuel subsidy reform, towards sustainable energy, energy efficiency and safety nets. The report provides potential SWAP outlines for Bangladesh, Indonesia, Morocco and Zambia. "Making the Switch" was written for the Nordic Council Ministers by the Global Subsidies Initiative of IISD and Gaia Consulting.

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Reports: Gender and Fossil Fuel Subsidy Reform: Current status of research

This report explores current knowledge on energy subsidy reforms and gender through a review of existing literature. First, it sets out the global context of energy subsidies, energy access and gender empowerment. It then reviews literature on gender, energy access, fossil fuel subsidies and mitigation measures related to subsidy reform, such as cash transfers. Finally, it provides an overview of these issues across three focus countries: Bangladesh, India and Nigeria, as well as case studies on Peru, Mexico and Morocco.

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Reports: Energy Sector in Bangladesh: An agenda for reforms

The Government of Bangladesh has committed to ensuring access to affordable and reliable electricity for all citizens by 2021. This report addresses the key priority issues for reform in the energy sector along with an agenda for its progressive implementation. It starts with an overview of energy subsidies in Bangladesh, before surveying the country’s energy sector development plans, with an emphasis on the electricity sector. Finally, the report discusses the important role that energy pricing policy will play in achieving the government’s objectives.

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Blog: Bangladesh Roundtable on Fossil-Fuel Subsidy Reform

BANGLADESH– 27-28 November 2012 – To help share experiences on the successes and challenges with fossil-fuel subsidy reform in Bangladesh, the IISD-GSI, in partnership with the Bangladesh Institute of Development Studies (BIDS), held two-days of events in Dhaka. On 27th November a roundtable meeting was held with key government agencies and power sector stakeholders to discuss energy price reform.

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News: Bangladesh Increases Fuel Prices for the Second Time in Four Months

The Bangladesh government lifts fuel prices by a maximum of 19% per litre to reduce the subsidy on imports of petroleum products, according to Bangladeshi newspaper The Daily Star. Prices of diesel, petrol, octane and kerosene will rise by BDT 5 (US$ 0.07). Bangladesh increased fuel prices for the second time in more than four months in a move that economists fear will fuel inflation.

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