LPG still selling above fixed price as energy division meets importers to boost supply

Despite repeated price increases, liquefied petroleum gas (LPG) is still not available in the market at the fixed price. The fixed price of the most widely used 12 kg LPG cylinder is 2,060 taka, but it is still selling in the market for up to 2,500 taka.

There are also complaints that the supply of LPG in the market has not returned to normal.

In this situation, the Energy and Mineral Resources Division held a meeting on Monday with representatives of the LPG Operators of Bangladesh (LOAB), the organisation of LPG importers.

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud and State Minister Anindya Islam Amit discussed increasing LPG imports with the businessmen at the meeting.

The information was given in a press release from the Ministry of Power, Energy and Mineral Resources. It said the meeting discussed increasing fuel imports and supply, keeping prices under control, taking action against dishonest dealers or distributors, and LOAB giving clear guidance on the international fuel price situation.

Earlier, on 8 November, Prothom Alo published a report titled 'Cooking gas has to be bought paying 300 to 440 taka more'. It said the Bangladesh Energy Regulatory Commission (BERC) fixed new LPG prices on 2 November.

Under the new prices, the commissions of importers, distributors and retailers were all increased, yet LPG is still not available in the market at the fixed price.

More than 10 million consumers in the country use LPG. Of this, 80 percent is used for cooking at home. Demand for LPG has risen sharply in the country since 2015. Annual demand is now more than 1.8 million tonnes.

About 99 percent of this sector is in the hands of the private sector, which imports LPG and supplies it to the market. The remaining 1 percent is produced domestically and supplied by a government company.

According to LOAB and BERC, LPG imports were 158,000 metric tonnes in August and 156,000 metric tonnes in September.

In October, imports were less than 142,000 metric tonnes. But by 4 November, a further 40,200 metric tonnes of LPG had arrived in the country.