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LPG sells at high price in Chatmohar ignoring BERC directive


Published : 21 Jun 2021 09:19 PM

Although liquefied petroleum gas (LPG) is supposed to be sold at the price fixed by the Bangladesh Energy Regulatory Commission (BERC) from this June, wholesale dealers and retailers in Chatmohar have been selling LPG at higher prices. Therefore, consumers have to spend an additional Tk78 toTk100 per cylinder, or more.

On April 12, BERC fixed the LPG price for the first time in the country, which was later adjusted on April 29. BERC has reduced the latest retail price of LPG at the consumer level in the country from Tk 906 to Tk 842, including 12kg cylinder in compliance with the global market.

Earlier, BERC started adjusting LPG price when CAB filed a writ petition in the High Court in 2016 considering the public interest. Although LP gas has been marketed in the country for almost three decades, for a long time the price was not officially fixed.

However, traders of Chatmohar are not following the price and policy set by BERC. Hundreds of shopkeepers are selling LPG without explosives in different markets of Chatmohar. Eevn, they are found in tea stalls and grocery stores. They are selling LPG of different companies including Omera, Bashundhara, Jamuna, Fresh, Beximco, BM. Dealers are charging retailers Tk 880 per cylinder. Moreover, retailers are renting vehicles to carry the cylinders to their shops. Depending on the distance, the purchase cost of the retailers stands at Tk 890 to 900, including transport cost. They are claiming to be profiting Tk 20 to 30 per cylinder.

As a result, the consumer has to buy 12 kg cylinder of LPG atTk 920 to 930. In rural areas, some vendors are even charging more. Consumers are paying Tk 78 to 100 per cylinder.

Some consumers, including Mohaiminul Halim, a resident of Baluchar in Chatmohar municipality, said that in case of exchange of 12 kg bottles, the distributor or marketing charge is Tk 50, but the dealer charge is Tk 30. But, a cylinder is sold up to Tk 1000 here.

Besides, retailers say they have to buy each LPG cylinder at Tk 870 to 880. Besides, the price including transport cost goes up to Tk 890. Therefore, if they do not sell forTk 920, they will not have any profit. They are not able to sell LPG at the fixed price as they have to buy LPG cylinders at a higher prices.

Kawsar Hossain, owner of Kawsar Traders, located in the bus stand area of Chatmohar Municipality, and Omera LPG dealers in neighboring Bhangura and Faridpur upazilas. He said, “The company is takingTk 905 per LPG cylinder. They also give a sales target. If we can meet the target, we get Tk 45 back, at the next delivery through coordination. And if we can't meet the target, we get Tk 35 back.”

“In that case, the price of a cylinder is Tk 860 or 870. We are taking at leastTk860 for selling 20 cylinders while Tk 870 for selling 5 cylinders. Therefore, a retailer has to sell it for Tk 900 to 920,”he added.

In this regard, Chatmohar UNO Saikat Islam said that no dealer or retailer can sell LPG at a price higher than the price fixed by the government. The matter will be looked into very soon.