Fixed price 2,060 taka, but 12kg LPG cylinders selling for up to 2,500 taka in the market
The 12kg cylinder is the most widely used for cooking. On 2 November, the Bangladesh Energy Regulatory Commission (BERC) fixed its price at 2,060 taka. But in the market it is selling for 2,350 to 2,500 taka. In Dhaka's markets, buyers have to pay at least 300 taka extra for a 12kg cylinder in some places, and 440 taka extra in others. Higher-than-fixed prices are also being charged in markets outside Dhaka.
A visit to 15 LPG shops in different areas of Dhaka yesterday, Saturday, found 12kg cylinders selling for 2,350 to 2,500 taka. For 45kg cylinders, 1,200 to 1,400 taka extra is being charged.
When the LPG price was fixed, the commissions of importers, distributors and retailers were all increased. At the time of fixing the new price, importers' commission for stocking and bottling 12kg cylinders was raised by about 82 taka. The distributor's commission was raised from 50 to 85 taka and the retailer's commission from 45 to 70 taka. Even so, consumers are not getting cooking gas at the fixed price. Distributors and retailers claim that this commission does not cover their costs.
A visit to eight retail shops and four dealer points in Mirpur's Shewrapara area and Uttara's Sector 12 found cylinders selling for 2,350 to 2,500 taka in every shop. But most sellers do not want to sell gas to strangers. They fear that a journalist or someone from the consumer rights authority might turn up, and when customers come they say there is no gas.
When this reporter tried to buy gas from a shopkeeper named Md Sayem in Mirpur's 60 Feet area, he first said there was no gas and that it would be available after two days. Later the reporter took the seller's phone number and called two hours later to ask about gas. He first wanted to know the caller's identity, and after the name and home address were confirmed, he said gas was available — but asked 2,500 taka for it.
At Uttara's Sector 12, a retail gas seller named Asadullah Noor was found selling 12kg cylinders for 2,400 taka. He said he had bought them himself for 2,250 taka.
With the cylinder price at 2,500 taka, some people like Tamanna, unable to manage, are now cooking with firewood.
Two top importing companies said they have increased LPG supply and that action should be taken against those charging extra. Distributors, on the other hand, complain that there is a supply shortage and that some companies are also charging extra.
BERC chairman Jalal Ahmed told Prothom Alo that there are complaints of sales at higher prices and that work is under way on it. How much industrial use of LPG has grown is being verified, and two members of the commission are going to the field. Those who sell at higher prices in the market are mostly those who buy from others without importing, and BERC is working on that too.
Some importers said there is a shortage of LPG in the world market. Supply from the Middle East has almost stopped, and only a nominal amount is coming from African countries. Now most of the LPG in the country is imported from the United States, and it has to be bought at higher prices. Ship freight for bringing LNG from the United States also costs more. The country also lacks the infrastructure to store very much, and if the Middle East war stops after stocking up, they could face heavy losses.
Abu Saeed Raja, chief marketing officer of Meghna Fresh LPG Company, told Prothom Alo that LPG is being supplied at maximum capacity from Meghna's four plants, and supply is also being given to those who cannot import. So the supply of LPG in the market should be normal, and monitoring by law enforcement agencies in the market should be increased.
Azam J Chowdhury, former president of the LPG Operators Association of Bangladesh (LOAB), told Prothom Alo that in the current global situation, ensuring LPG supply has now become more important than price. Even importing at higher prices, supply is being given at the price fixed by BERC. If the price of LPG rises, consumers will fall, which operators do not want. But shops here and there are selling LPG as they please, and monitoring needs to be ensured to stop that.
Sources in the LP Gas Traders' Cooperative Society said the facilities given to importers were not given by BERC to distributors and retailers. The commission was raised by less than demanded, supply in the market has still not increased, trucks have to wait a long time at company plants, costs are rising, and some companies are charging extra. The society's treasurer, Abu Taher Qureshi, told Prothom Alo that although supply outside Dhaka is possible at the commission fixed by BERC, it is in no way possible within Dhaka because transport costs are much higher. That is why distributors cannot sell at the fixed price.
The Directorate of National Consumer Rights Protection also knows about cylinder gas being sold above the government rate in the market. Its director general, Md Zahirul Islam, told Prothom Alo, 'Information about higher prices is reaching us. Often it is sold a bit secretly. Raids have already been conducted in various places and fines imposed. A raid was conducted last Thursday too, and it will continue tomorrow as well.'
More than 10 million consumers in the country use LPG, of which 80 percent is used for household cooking. Since household gas connections were stopped, demand for LPG has grown sharply since 2015. Annual demand for LPG is now more than 1.8 million tonnes. About 99 percent of the sector is held by the private sector, which imports and supplies it, while the remaining 1 percent is produced and supplied in the country by a government company. In five and a half years, the price of a 12kg LPG cylinder has more than doubled — from 975 to 2,060 taka.
According to LOAB and BERC sources, 158,000 metric tonnes of LPG were imported in August, 156,000 tonnes in September and less than 142,000 tonnes in October, although a further 40,200 tonnes arrived in the country by 4 November. LOAB has warned distributors at various times not to sell LPG at higher prices.
