Move to raise LP gas prices once again

 Bangla Press Desk; Amidst ongoing complaints that Liquefied Petroleum Gas (LPG) is not available in the market at the government-mandated prices, a move is underway to increase prices once again. The Bangladesh Energy Regulatory Commission (BERC) has scheduled a public hearing for October 29 to discuss proposals for raising charges related to the bottling, distribution, and retail sale of LPG.

On October 4, the BERC had increased the price of a 12kg LPG cylinder by 252 taka, setting it at 1,837 taka. Despite this, consumers continue to report that they are unable to purchase gas at the regulated price. Meanwhile, importers, distributors, and retailers have submitted proposals to further increase various operational costs and commissions.

According to these proposals, LPG companies seek to raise bottling charges from 15–16 taka per kg to 25–30 taka per kg. Distributors have proposed increasing their charges from 4.17 taka to 8.33 taka per kg, while retailers have proposed raising their charges from 3.75 taka to 10 taka per kg.

Furthermore, distributors are demanding an increase in their commission from 50 taka to 150 taka per 12kg cylinder, while retailers are seeking an increase from 45 taka to 70 taka.

The BERC stated that the public hearing is being organized in response to the proposals submitted by the relevant entities. During the hearing, arguments and data both for and against these proposals will be reviewed. However, a public hearing does not guarantee that prices will necessarily increase.

600 Taka Above the Regulated Price

Consumers have complained that LPG cylinders are not available in the market at the government-mandated prices. In some locations, buyers are forced to pay 500 to 600 taka more than the official price for a 12kg cylinder. Consequently, consumers are not only burdened by having to pay inflated prices for gas, but they are also now facing concerns over the potential for further price hikes. Previously, a two-day nationwide strike had been announced due to dissatisfaction among business owners. Leaders of the LP Gas Business Cooperative Association argued that costs related to transportation, labor wages, warehouse rent, and other operational expenses have risen, necessitating an increase in their commission.

The strike was called off after the Bangladesh Energy Regulatory Commission (BERC) promised to hold a hearing regarding these demands on October 14. Prior to this, the Minister of Power, Energy and Mineral Resources, Iqbal Hasan Mahmud, and the Minister of Commerce, Khandaker Abdul Muktadir, had held meetings with LPG operators.

Allegations of an Artificial Crisis

Amidst reports of a supply shortage, the government has expressed concern that an artificial crisis might be in the making. On September 30, the Energy Minister instructed Deputy Commissioners to investigate whether an artificial crisis is being engineered to sell LPG at inflated prices.

The BERC is set to review proposals from companies and business owners regarding price hikes during a public hearing scheduled for October 29. However, for consumers, the key questions remain: will the supply of LPG at regulated prices be guaranteed, and will gas prices rise further if these new proposals are approved?