Consumers paying Tk 700 extra for 12 kg LPG cylinder
Graphics: Agamir Somoy
At Molla Enterprise in the Krishi Market area of Ring Road in Mohammadpur, Dhaka, seller Md Didar quoted Tk 2,400 for a 12 kg LPG cylinder when asked about the price. “The price is Tk 2,400. If we deliver it to your home, you have to pay another Tk 50.”
When told about the government fixed price, he replied, “The shop was closed for two days due to the LPG shortage. I stayed awake until 3 a.m. Sunday and managed to get 30 cylinders. I bought them at a higher price, so I am selling them at a higher price. If you do not like the price, look elsewhere.”
A little farther away in Adabor, Rahmatullah Enterprise owner Rahmatullah quoted Tk 2,200 for a cylinder of the same weight.
Meanwhile, when asked about the price over the phone, Md Yousuf, owner of BM Enterprise in Sector 13 of Uttara, said the price would be Tk 2,400 if the customer did not bargain.
LPG is being sold at higher prices in different parts of the capital as well as in district towns. In some places, customers are being charged as much as Tk 2,500.
However, just one day earlier on Sunday, the Bangladesh Energy Regulatory Commission (BERC) increased the price of the most widely used 12 kg cylinder by Tk 252 and set the price at Tk 1,837.
The prices of cylinders of other weights also increased. However, 12 kg cylinders had already been selling for Tk 2,200 to Tk 2,300 in the market for the past two weeks.
Kamal Hossain, a resident of Mirpur 1, said, “I was using an electric stove hoping that the price would come down because the market price was very high. When I went to the shop today (Sunday), the shopkeeper asked for Tk 2,600. After requesting him repeatedly, I had to buy one cylinder for Tk 2,500.”
Outside Dhaka, there have been allegations of prices ranging from Tk 2,400 to Tk 2,500 in Munshiganj and Tk 2,200 to Tk 2,500 in Mymensingh.
Similar allegations have also come from Cumilla, Bogura, Rajshahi and several other areas. Cylinders of other weights are also being sold at proportionately higher prices.
Commercial users are facing even greater pressure. There are allegations that customers are being charged Tk 1,200 to Tk 1,500 more than the fixed price for 30 kg and 45 kg cylinders.
A restaurant requires around 20 large cylinders a month. Paying an additional Tk 1,200 for each cylinder increases its monthly cost by around Tk 24,000.
The Directorate of National Consumers’ Right Protection is conducting drives in the market.
On Sunday, three establishments were fined in Munshiganj. An LPG seller was fined Tk 5,000 for selling at an excessive price.
Three shops in Gaibandha were fined Tk 8,500 in total while two shops in Barishal were fined Tk 70,000.
In Ashulia of Savar, an establishment was fined Tk 10,000 for discrepancies in consignment information.
Another establishment was fined Tk 200,000 over allegations of selling at excessive prices, filling small cylinders from large cylinders and adding water to cylinders.
According to people involved in the sector, around 10 million customers use LPG in the country. About 80 percent of it is used for cooking while the rest is used in industries and transportation.
The private sector handles 99 percent of LPG imports.
The LPG Operators Association of Bangladesh (LOAB) said 158,000 tonnes were imported in August and 156,000 tonnes in September.
In other words, imports have not decreased significantly. Yet supply in the market has declined.
According to sector insiders, ensuring supply is the government’s responsibility and that responsibility has not been fulfilled. They also believe the crisis could have been avoided if market monitoring had begun earlier.
LOAB President Amirul Haque said, “LPG imports have not decreased. Operators are selling at the price fixed by the government. Instructions are also being given not to sell at higher prices.”
At a meeting with the energy minister last Saturday, importers said international prices and shipping costs had increased. Despite this, they are supplying gas to distributors at the price fixed by BERC.
They claimed that if manipulation is taking place, it may be occurring at the distributor or retail level.
BERC Chairman Jalal Ahmed said, “If we receive information that sellers are charging more than the price fixed by the commission, action will be taken against them. Drives are already being conducted in different areas. We are checking whether anyone has stockpiled LPG. Daily supply information is being collected from companies and will be verified at the field level. I hope the situation will return to normal soon.”
