Subsidized Energy Pricing in Bangladesh and Consequences of Phasing Subsidy Out

Subsidized energy pricing is a practice that has been followed by almost all the countries, especially developing countries. Despite the requirement of energy subsidy for an economy like one in Bangladesh, it is a parasite that slowly eats up government money and blocks the process of sustainable growth. Bangladesh is not a country which has enough energy resources to sustain for the long run. So, proper consumption and less wastage is a must requirement. Thus, phasing out energy subsidy through a gradual process is the only way to go forward. But, rationalizing energy subsidy has some consequences over the society, economy and environment. So, it is high time to promote rational energy pricing and to prepare for the consequences. The government and policy makers are expected to add up with the steps they are already taking to phase out energy subsidy and thus go for better energy security. In this paper we have discussed the present energy pricing in Bangladesh and the consequence she is going to face if subsidy is phased out. Also we have shown the environmental consequences due to energy subsidy along with a set of proper recommendations for our government to take Bangladesh in the path of sustainable development.