Photo : Collected
Residential gas connection has been off for more than an era. As a result, consumers have been forced to shift towards Liquefied Petroleum Gas (LPG). As a result, consumers have become hostage to a few companies. They are increasing the price as they want.
Even though the Bangladesh Energy Regulatory Commission (BERC) fixes the price regularly, the companies are not paying attention to it. Consumers have become helpless to their power.
According to information, the then government stopped residential gas connections in 2009 citing gas shortage. In late 2013, residential gas connections were introduced on a limited basis. However, after 2014, the Energy Division prohibited gas distribution companies from accepting new applications from residents. Then in 2019, an order was issued to suspend the residential connection in writing.
At present, besides Beximco, around 30 operators including industry giants like Bashundhara, Omera, Meghna Group (Fresh), S Alam Group, JMI Group, City Group are doing LPG business across the country.
Apart from this, foreign operators such as France's Totalgaz, Dutch Petromax and Hong Kong's Kai Heng Long Global Energy have also made their presence felt in the market. As a result, the country's LPG market has grown significantly in the last decade.
Market operators said the demand for LPG in 2013 was 80,000 metric tonnes. By the end of 2023, this demand will exceed 1.4 million metric tons. That is, the demand for LPG has increased 15 times within a decade. And few companies have used this opportunity. Beximco, Bashundhara, Omera are among them.
JMI Group currently has the largest storage capacity among LPG operators at 14,000 MT. Next in terms of storage capacity are BMI Energy (10,700 MT), Omera (9,600 MT) and Bashundhara (9,300 MT).
Meanwhile, the LPG market has been bullish for three consecutive months. Last August, the price of LPG was increased by Tk 11. At that time, the price of a 12 kg cylinder was fixed at Tk 1,377. Then in September, it was increased by Tk 44 to Tk 1,421. In October too, BERC increased the price by Tk 35 to Tk 1,456.
Although coordination with the international market is being talked about, but the stakeholders claim that it will take a long time to control the instability in the LPG market. Therefore, the price of LPG cannot be reduced.
It is alleged that LPG cylinder sellers from retail to wholesale in almost every area of the capital collect at least Tk 200-300 extra per cylinder from the buyers. Manufacturers and retailers are blaming each other for this.
Last February, a survey by the Directorate of Consumer Rights Protection said that consumers have to pay at least Tk 215 crore more per month to buy LPG cylinders. Manufacturers, dealers and retailers are collectively leading this money loss.
BERC Chairman Jalal Ahmed told The Daily Messenger, "We announce the price. We finalize the price after sitting with the importers. Traders must comply with the new price. In this case, a decision will be taken after discussing with the big traders."
He also said that arrangements should be made so that the retailers can be brought under the license. Otherwise it is difficult to monitor the market. Hope to start working soon.
Messenger/Disha
