Appropriate policies on price control and energy subsidy are crucial for management of energy sector in any country. In a mixed economy like Bangladesh, energy price cannot be left at the mercy of market. The parity with market price has to be brought in gradually, say experts. To ensure energy security in the country, it needs phased removal of subsidy, allowing price variation within an adjustable range and introduction of a powerful and competent regulator. In most cases, price control creates shortage, facilitates wastage and sometime promotes environmental damage. Short-term subsidies are easy to formulate and also easy to withdraw. If the country has a long history of subsidy, it is very difficult to phase it out. There are strong resistance from the civil society and trade unions. Therefore, it requires tremendous political will to take bold and tough decisions on energy subsidy. Bangladesh should learn from the countries, which have successfully managed to phase out subsidies by targeted compensation. Apart from this, another way of removing subsidy is public awareness campaign. If consumers understand every aspect of the cost involved in a product, they are more likely to accept the changes as long as it is clear and rational..