LPG prices still high despite improved supply

Consumers are still paying at least Tk 2,200 for a 12kg liquefied petroleum gas (LPG) cylinder, Tk 363 above the regulator-set price, despite improved supply, while traders have announced a two-day nationwide shutdown this week demanding higher commissions.

The Bangladesh Energy Regulatory Commission (BERC) raised the price of a 12kg cylinder by Tk 252 to Tk 1,837 on October 4. Yet, a survey of 10 randomly selected retailers in the capital yesterday found cylinders selling for no less than Tk 2,200.

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Supply has improved, with only one retailer reporting no stock, compared with eight in a similar survey on October 4. The eight had received no cylinders since September 20-22. At the time, available cylinders were selling for Tk 1,900-2,250 against the regulated price of Tk 1,585, suggesting retail prices have risen alongside the official rate.

Retailers in Nikunja, Mohammadpur, Shyamoli, Shyambazar, Kunipara, Khilgaon and Mirpur reported improved availability but said they could not sell at the regulated price.

A retailer in Shyambazar quoted Tk 2,300, saying he bought cylinders at Tk 2,150 each from distributors. “We also have other expenses, including shop rent and delivery charges, so we cannot sell them below that price,” he said.

Another retailer in Nikunja, selling BM Energy, Jamuna and Petromax cylinders, quoted Tk 2,200 each.

The only retailer without stock, on Green Road, said he could arrange a cylinder from a shop across the road. “It would cost Tk 2,400. I would have to get it from that shop,” he said.

Meanwhile, the LPG Traders Cooperative Society Ltd yesterday announced a nationwide shutdown of LPG sales outlets on October 15 and 16, demanding higher commissions, an end to alleged arbitrary fines and police harassment, and steps to address supply problems.

At a press conference at the Jatiya Press Club, the society outlined seven demands and cited rising operating costs and persistent supply disruptions.

It demanded an increase in the distribution charge for a 12kg cylinder from Tk 50 to Tk 150, or 7 percent of the retail price, citing higher fuel prices, licence fees, loading and unloading costs, and losses from idle cylinders.

It also demanded that companies revising prices more than once a month do so only through BERC announcements.

The society urged the government or the companies concerned to allow operational companies to refill millions of idle cylinders belonging to suppliers unable to provide gas for prolonged periods.

Other demands included showing original prices on company invoices to distributors, ensuring fair transport compensation for companies’ failure to deliver gas to distributors’ warehouses, and ending traffic police cases against LPG-carrying vehicles solely for lacking safety railings despite having all other required documents.

It also urged the Directorate of National Consumer Rights Protection to stop imposing what it called “unethical and unreasonable fines”.

Society leaders cited complications with letters of credit (LCs) as a factor behind the supply crisis, saying few companies remained operational. They also alleged that some companies increased prices without regulatory approval, sometimes within days of BERC announcing monthly rates.

Society President Md Selim Khan said traders faced repeated legal action and penalties despite appeals to the authorities. He cited a distributor in the Khulna-Bagerhat region who was heavily fined and had goods confiscated for storing 40 additional cylinders.

During the briefing, BERC Chairman Jalal Ahmed phoned the business leaders and assured them he would take steps to examine their demands and address the crisis, Selim said.

Jalal told The Daily Star that BERC planned to review dealer and retailer commissions, last fixed in 2021. “We will certainly hold a public hearing.”

BERC’s latest announcement fixes the distribution charge for a 12kg cylinder at Tk 50 and the retailer’s charge at Tk 45.

Meanwhile, the LPG Operators Association of Bangladesh (LOAB) called for legal action against businesses hoarding cylinders or selling gas above the regulated price.

LOAB President Mohammed Amirul Haque said the association had repeatedly demanded action against violators.

“My position is clear: if any operator, distributor or retailer does anything wrong, take legal action against them,” he said.

He acknowledged that consumers were paying 30-40 percent above the regulated price.

“We have urged law enforcement agencies, district administrations and consumer rights authorities to monitor retail markets and take action against violators,” he added.