Photo : Messenger
In an unsettling turn of events, the Bangladesh Energy Regulatory Commission (BERC) has implemented a staggering 40.54 percent increase in liquefied petroleum gas (LPG) prices within a span of just six months during the current fiscal year. This substantial hike, leading to a fixed rate of Tk 1,404 for a 12 kg LPG cylinder, has stirred considerable apprehension among experts and consumers alike.
Comparing the price surge since July, BERC has elevated the cost of LP gas by Tk 405, significantly burdening retail buyers and posing formidable challenges to their purchasing capabilities.
According to BERC's breakdown, the pricing trajectory of a 12 kg LPG cylinder stood at Tk 999 till July, escalating to Tk 1,140 in August, Tk 1,284 in September, Tk 1,363 in October, Tk 1,381 in November, and reaching Tk 1,404 in December.
Addressing this surge, BERC Chairman Md. Nurul Amin conveyed to the Daily Messenger, "The import-based nature of the product necessitates aligning the price with international rates.”
Amin attributed the price hike in Bangladesh to the concurrent increase in primary fuel prices globally, thereby affecting local market costs.
The government's stance on fixing LPG prices based on announcements from the Saudi state company Aramco further accentuates the vulnerability of the market to international fluctuations. As Saudi prices surge, Bangladesh experiences a corresponding escalation in the base price, amplifying the challenges faced by local consumers.
Moreover, complications arising from Letter of Credit (LC) intricacies have induced concerns among businesses, prompting fears of a potential shortage of LP gas in the market. Many companies are relying on existing stocks to maintain supply, but any delay in importing new products may trigger a supply crisis.
BERC Chairman Nurul Amin acknowledged discussions held with LPG importers in August, during which Bashundhara and Beximco highlighted LC complications. Despite requests for written applications to address these issues, Amin stated the absence of formal documentation is hindering timely discussion of the issues.
While Amin assured that some importers possess reserves, averting an immediate crisis, prolonged import complications could exacerbate the risk of a market shortage.
Salim Khan said, “I am distributor of Omera gas. I have to buy a 12 kg LPG for Tk 1,130. But the price should be less than Tk 1100. I think BERC should put pressure on the companies.”
Although the supply of LP gas in the market is normal, it is not being sold anywhere at the rate fixed by the Bangladesh Energy Regulatory Commission. The company is charging more than the maximum retail price of Tk 1140 set by BERC in certain areas. BERC fixed the maximum retail price at Tk 1140 this August. A commission of Tk 38 was set for retailers and Tk 34 are for distributors.
Messenger/Disha
