LPG cylinders sold for more than govt-set prices

Although the price of liquefied petroleum gas (LPG) has been adjusted due to the reduction in prices in the global market, Dhaka’s market is yet to see the changes.

The Bangladesh Energy Regulatory Commission (BERC), the regulatory body, issued an order on April 12 fixing the price of liquefied gas for the first time to ensure widespread use of LPG by citizens, as city dwellers had to buy LPG at higher prices.

After that, the price of LPG was reset in three phases. The BERC last issued an order to publish the latest price list of LPG for June.

According to the government list, the price of a cylinder of 12 kg LPG at the consumer end is Tk842.

Also Read - LPG price slashed to Tk842 per cylinder

Talking to consumers, it was known that they are buying LPG cylinders at higher prices than government fixed prices which range from Tk950-1,200.

Masudur Rahman, from Mohammadpur, said: “We had a gas connection but low pressure and frequent outage forced us to shift to LPG. Unfortunately, the price of cylinder does not match with government order.”

Another consumer, Shahzad Talukdar said: “We consumers are being deceived by traders. They are cutting our pockets by charging more for the cylinders. The regulating body should monitor this issue immediately.”

A retail LPG gas seller, requesting anonymity, said: “We never sold gas at fixed prices. The cylinder producing companies fix it and we sell it with minimal profit.”

About the price variation, he said that he buys Bashundhara, Omera, Beximco and BM’s gas at Tk880-990 apiece, and then sells it at Tk1,000-1,200.

If the government sets the price lower, there is no problem selling at a lower price, he further said.

"We are yet to receive the new rates for cylinders, so we are selling at the previous prices," he added.

On Thursday, private LPG operators pursued a hike in retail prices of the fuel in the domestic market, and proposed to the energy regulator for taking that into account.

They also asked for reforms in the current pricing formula.

According to the BERC sources, it received their request and would arrange a public hearing before taking a decision next month.