The Bangladesh Energy Regulatory Commission (BERC) has taken an initiative to fix the price of Liquefied Petroleum Gas (LPG) at the consumer level to prevent the anarchy caused by labeling prices on the cylinders.
Besides, the government is going to stop the illegal sale of LPG chaotically to ensure people’s safety, energy division officials said.
The government is discouraging natural gas connections or pipeline supply in the sector due to a gas crisis. LPG is recommended as an alternative to ensuring fuel safety.
LPG is a mixture of propane and butane that becomes liquid under pressure, which can then be stored in pressurized containers for use. It is used for heating, cooking and auto fuel. LPG is relatively new in Bangladesh, but the demand is increasing day by day.
According to the Energy Division, the total supply of liquefied petroleum gas (LPG) in January 2009 was 45,000 MT. At present this quantity has increased to 9 lakh MT. Of this, only 16,000 tonnes is being supplied by state-owned BPC. Private companies are supplying the rest. However, currently the yearly demand is around 15 lakh tonnes.
Meanwhile, World LPG Association (WLPGA) sees Bangladesh as one of the fastest-growing LPG markets in the world, and predicts that demand for the fuel might reach up to 30 lakh tonnes by 2025.
Energy expert, Professor M Shamsul Alam said “there are state-owned companies in any sector to control the market. They will meet most of the market demand. But in our country the scenario is reversed. Not only the LPG sector in the country, in fact the entire gas sector is controlled by the traders. As a result, the capacity and marketing system of government LPG companies are not being modernized. Some officials are getting unethical benefits while the people are losing.”
“LPG traders are also controlling the issue of not providing gas connections to households. They are desperate to hold on to the LPG market. But if gas connection was given to the households, the government revenue would increase. Besides, the illegal gas users will decrease,” he added.
BERC sources said they have started work to fix the price of LPG. Like oil, LPG will be sold all over the country at the same price. The commission has already discussed with businessmen, experts and stakeholders. The price will be fixed through reviews every month or once in three months. Storage and cylinder prices will be fixed once a year. The LPG price will be finalized by this month.
In addition to residential purposes, various other uses of LPG have been started. Meanwhile, auto gas has been introduced in the country, which is mainly used as fuel for transportation. Auto gas can be found at lower prices than those of petrol and compressed natural gas (CNG). LPG is also being used in commercial kitchens.
Consumers and industry insiders in different districts said sales of LPG cylinders declined in the country at the beginning of the Coronavirus transmission, but sales began to pick up last May. In the international market, the price of this petroleum product has come down. For this, Bangladesh Petroleum Corporation (BPC) has reduced the price of its own produced LPG per cylinder weighing 12 liters from Tk 700 to Tk 600 at the consumer level in the country. But the price of the same weight of gas supplied by private companies may be as high as taka 950. There are also price differences between companies and locations. Tk 1,050 at the retail level is also charged by showing higher transportation cost in hilly and shoal (char) areas.
In Kolkata, the price of a 14.2 kg unsubsidised cylinder is taka 704 (Rs 621) and the subsidized cylinder is even lower. As a result, the price of LPG in India is less than taka 50 per kg. On the other hand, the maximum price of LPG per kg in Bangladesh is taka 83.
According to BERC, the transportation cost of LPG in India is Taka 15 per kg but in Bangladesh it is 30 to 32 taka. If this cost is reduced, it is possible to reduce the LPG price.
To this end, LPG has to be transported in big ships.
Consumers say that sellers demand prices as per wish due to prices not being written on the bottle. The price goes up in different situations. Many cylinders contain less quantity of LPG than mentioned. There is also a risk of accidents as many cylinders are not being stored properly.
According to the Energy Division, three steps are being taken to ensure the safety of LPG. Letters are being sent to the DCs to stop the sale of illegal LPG cylinders everywhere. Approval is being sought from the Ministry of Public Administration to run a mobile court to stop the anarchy.Vigilance by the Department of Explosives is being increased. The decision has been made at a recent meeting of the energy division.
Energy expert, Professor Badrul Imam said that a large number of people are dying from cylinder accidents. It is important to ensure the quality of the cylinder. The company that does not maintain quality should have its licence cancelled.
