Consumers still cannot buy LPG at government-fixed prices, even after commissions for importers, distributors and retailers were raised at the last price adjustment.
On 2 November, the Bangladesh Energy Regulatory Commission (BERC) set the price of a 12kg cylinder, the size most widely used for household cooking, at Tk 2,060. On Saturday, a visit to 15 LPG shops in Dhaka found 12kg cylinders selling for Tk 2,350 to Tk 2,500. Sellers charged an additional Tk 1,200 to Tk 1,400 for 45kg cylinders.
In Shewrapara in Mirpur and Uttara Sector 12, visits to eight retail shops and four dealer outlets found the same range of prices. Sellers were reluctant to sell to unfamiliar buyers, often saying there was no gas. Outside the capital, prices are also above the fixed rate. In Sitakunda in Chattogram the price ranged from Tk 2,100 to Tk 2,400, and in Bagmara in Rajshahi from Tk 2,200 to Tk 2,300.
At the last price adjustment, the importers' commission for 12kg cylinders, covering storage and bottling, rose by about Tk 82. The distributors' commission rose from Tk 50 to Tk 85, and the retailers' commission from Tk 45 to Tk 70. Distributors and retailers say these amounts are insufficient.
Two major importers say they have increased supply and that people charging extra should be penalised. Distributors allege a supply shortage and say some companies also charge higher prices. The LPG Gas Traders Cooperative Society says BERC has not given distributors and retailers the same benefits as importers.
BERC Chairman Jalal Ahmed said the commission had received complaints and was working on the issue. He said those who buy LPG from other suppliers instead of importing it themselves are mainly responsible for the higher prices. Two commission members were visiting the field.
Md Zahirul Islam, Director General of the Directorate of National Consumer Rights Protection, said reports of higher prices were being received. "In many cases, sellers keep the gas hidden and sell it discreetly," he said. Fines have been issued, and drives were held last Thursday and would continue.
Abu Sayeed Raza, chief marketing officer of Meghna Fresh LPG, said the company is supplying at maximum capacity from four plants, including to firms that cannot import. Azam J Chowdhury, former president of the LPG Operators Association of Bangladesh (LOAB), said ensuring supply has become more important than price. He said importers sell at BERC-fixed rates, while others sell at whatever price they choose.
More than 10 million consumers use LPG in Bangladesh, and about 80 percent of it is used for household cooking. Annual demand now exceeds 1.8 million tonnes. According to LOAB and BERC sources, imports were 158,000 tonnes in August, 156,000 tonnes in September and under 142,000 tonnes in October. Some importers cite a global LPG shortage, saying Middle East supplies have almost stopped and most of Bangladesh's imports now come from the United States, where prices and shipping costs are higher.
