Dhaka City Council Approves New Utility Subsidy Program to Ease Household Costs

Dhaka City Council has approved a new utility subsidy program targeting households struggling with rising electricity and water expenses. The measure, passed during the July 9 council meeting, is designed to help low- and middle-income families manage these essential service costs amid increasing inflationary pressures.

The program responds to growing concerns about the cost-of-living in Dhaka, where recent price increases in energy and utilities have outpaced average wage growth. City officials cited rising fuel prices and infrastructure maintenance costs as factors driving up utility rates. Local community advocates have called for relief amid reports that many households are reducing consumption of electricity and water to save money, affecting daily quality of life.

What the Subsidy Means for Dhaka Residents

Under the new policy, households with an annual income below 600,000 Bangladeshi taka will be eligible for a monthly discount on their electricity and water bills. For electricity, the subsidy will reduce the per-unit cost by 15 BDT for the first 150 kilowatt-hours consumed each month. Water bills will receive a 10% reduction for up to 15,000 liters monthly. The council documents indicate that about 35% of Dhaka’s households qualify based on income data from 2025.

This translates into an average monthly saving of 500 to 700 BDT per eligible household. Local analysts note this could help families afford other necessities, especially as food and transportation prices remain elevated. Utility providers will implement the subsidy starting August 1, with enforcement monitored jointly by the city finance department and utility companies.

Data Behind the Decision and Looking Forward

The council referenced the Dhaka Economic Review 2026 which outlines that utility costs have grown by 12% over the past year, while median household income has increased by only 5%. Council documents project the subsidy program will cost the city budget approximately 650 million BDT annually, funded through reallocation of discretionary funds and expected savings from improved metering and billing efficiency.

The subsidy program is slated for review at the end of the 2026-27 fiscal year. City officials have committed to tracking its impact on household budgets and utility consumption patterns, with a formal progress report due by June 2027. Depending on findings, the council may consider adjustments to reach more households or modify subsidy levels.

Residents can apply for the subsidy through the Dhaka Municipal Service Centre starting July 20, with required documents including income proof and recent utility bills. The city encourages all eligible families to take advantage of the program to alleviate monthly cost pressures.