Politics
Dhaka Voters Decide July: Gas and Electricity Subsidies Extended Two Years
Dhaka residents face a July ballot question that would extend current natural gas and electricity subsidies for another two years, with changes calculated to affect average monthly payments in city wards.
How we reported this
The Dhaka South City Corporation has placed a referendum on the July 25 ballot asking voters to approve or reject an extension of energy subsidies under the 2024 Household Relief Ordinance. The measure would keep current rates in place for natural gas connections serving homes in 50 wards rather than allowing scheduled increases set for September.
Why the Vote Comes Now
National budget documents released in May showed the central government reducing its contribution to local utility stabilisation funds by 12 percent. City officials responded by drafting the ordinance to shift part of the cost back to the municipal level if residents approve. Policy analysts note the timing aligns with the annual review of the Bangladesh Energy Regulatory Commission tariff schedule.
Residents in Mirpur and Mohammadpur would see the largest immediate difference because those areas contain the highest share of metered households using both gas for cooking and grid electricity for cooling. A family using one cylinder of subsidised gas per month plus standard domestic power would continue paying the existing combined rate instead of the higher schedule the commission has already published.
Budget Figures and Expected Changes
The legislation states that the city would allocate an additional 180 crore taka from its own revenue fund each year to cover the subsidy gap. Local advocates note this amount equals roughly 4 percent of the corporation’s annual development budget. The government says the policy will prevent an average monthly increase of 450 taka per household for the 1.2 million domestic connections inside the corporation boundaries.
If the measure passes, the subsidy extension runs through June 2028. If it fails, the commission’s new rates take effect on 1 September 2026 and the city corporation will not provide replacement funding. Ballots will be counted at the ward level with results certified by the Election Commission within 72 hours of polls closing.