Dhaka, April 12 -- Electricity bills and the prices of industrial goods are set to climb as the Bangladesh Energy Regulatory Commission (BERC) has increased furnace oil prices by about 35 percent.

Following an increase of Tk 24.59 per litre, the new rate has risen to Tk 94.69, effective from midnight on Sunday, according to a BERC press release.

Economists and industry insiders warn that this sharp spike will have a cascading effect on the economy.

Furnace oil is a primary fuel source for a significant number of independent power plants (IPPs) and captive power units in factories.

The IPPs often account for a third of power consumed nationally.

A hike of this magnitude is expected to immediately inflate power generation costs, which ...