Although the government took various initiatives, the activities of unscrupulous traders in the LP gas market could not be stopped. Considering the crisis, the government wanted to provide relief to consumers by reducing import duties; But it didn’t work. In the market, traders are still charging at least 30 taka more per kg of LP gas from consumers. According to observers, retailers, dealers, distributors and importers are more or less sharing this extra money.
According to various government statistics, the country has a daily demand of around 5 thousand tonnes of LP gas. Accordingly, more than 15 crore taka per day is being taken from the sale of LP gas.
In December last year, the government took various measures to deal with the situation when the price of LP gas increased amid the crisis in the country. In January, the price of a 12 kg cylinder was fixed at Tk 1350. But it was sold in the market for a few hundred rupees more. In many places, even with extra money, gas was not available. A cylinder of 12 kg was sold for a maximum of two and a half thousand rupees then. In February, the price fell slightly to 1700 rupees. In March, the price further decreased to Rs 1600. However, it is much more than the 1341 rupees fixed by the government.
Last Tuesday, after visiting different areas of the capital, gas of 12 kg cylinder is being sold at 1600 taka. Retailers are claiming that due to high purchase price, they are not able to offer gas to consumers less than this.
Bansree area retailer Mohammad Shiplu said, ‘Gas cannot be procured at the price set by the government. 12 kg cylinder has to be bought from 1350 to 1500 taka. Different companies have different prices for cylinders. So retail prices are different in different stores. We sell according to the purchase price. That’s why I have to sell 1600 or sometimes less.’
Incidentally, 12 kg cylinders are mostly used for household purposes.
Amanat Ullah, president of LPG Distributors Association, told Ajker newspaper, ‘The government fixed retail price of 12 kg cylinder is Tk 1341. But it is being sold at the plant level itself at that price. The price of the cylinders at the plant should be much lower so that the retail customers can really be offered at the price set by the government. And at the distributor level there are various costs including additional transportation, waiting charges. So the price is increasing at the marginal level.’
Amanat Ullah also said that although it is possible to carry 300 cylinders in a car, the plant gives 150 cylinders there. Where earlier gas was supplied one day after the demand was expressed, now one has to wait for three days. Due to these reasons the cost increases.
Ahsan Jabbar, Secretary General of LPG Operators Association of Bangladesh (LOAB), an organization of LPG importers, told Ajker newspaper, “145,000 tons of LPG have been imported in February. In that case, it cannot be said that there is a supply shortage in this month. We cannot say why the prices are not falling.’
The monthly demand of LP gas in the country ranges from 1 lakh 20 thousand tons to 1.5 lakh tons. The demand is increasing by 5 to 7 percent every year.
But Bikash Chandra Das, deputy director of the Dhaka divisional office of the Directorate of National Consumer Rights Protection, told Ajker newspaper, “Whatever LP gas importers say, we do not think that they are still supplying the product at the right price.” Because, we have proof that the official invoice has written a similar price and in reality it is higher than that. Dealers and distributors are helpless in that case. Again they are buying at a higher price and selling at a higher price.’
Bikash Chandra Das said that the Directorate of Consumer Rights Protection did not conduct any operation on LP gas after the start of fasting. Because, more attention has been paid to the operation in the market of Eid products during fasting.
When contacted about the overall issue, Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed said, ‘We have come to know that the importers are now releasing products at the right price. But there are irregularities at dealer and distributor level. In that case, consumer rights will take action against these irregularities. Because we do not give license to dealers, distributors. Because of this it is not possible for us to take action against them. But now there is a war going on in Iran. The transportation of goods through the Strait of Hormuz is suspended. We will give some more guidance during the price announcement this month.’
