LP gas sale to remain stalled for two days nationwide
Representational image. Collected.
Traders have announced a program to keep LP gas sales closed across the country on October 15 and 16, demanding an increase in commission, ensuring uninterrupted supply, and an end to administrative harassment. The LP Gas Traders Cooperative Society Limited has made this announcement.
At a press conference held at the National Press Club in the capital on Monday afternoon, the organization's president, Md. Selim Khan, announced the program.
He said that on these two days, all LP gas shops in the country will remain closed. He also warned that if the matter is not resolved within this period, shops will be kept closed for an indefinite period afterward.
A total of seven demands were raised at the press conference. These include increasing the commission of distributors, ensuring gas supply from the companies, and stopping harassment in the name of raids and fines by the Directorate of National Consumer Rights Protection.
Selim Khan said that five years ago, the Bangladesh Energy Regulatory Commission (BERC) had fixed a commission of 50 taka per cylinder for distributors. Since then, fuel oil prices, transportation costs, cylinder loading and unloading expenses, warehouse rent, and license fees have increased. Therefore, a demand has been made to make the commission 150 taka or 7 percent of the sale price.
In a previous letter to BERC, the association had also provided a calculation of expenses. It said that bringing cylinders from the company to the distributor's warehouse costs 50 taka. Loading, unloading, and reaching the retailer costs another 35 taka. Employee salaries, warehouse rent, electricity bills, and other expenses cost 25 taka. Adding 40 taka profit to this, a demand of 150 taka is being made.
Selim Khan alleged that although BERC announces prices every month, some companies change the price again after five to seven days, which creates instability in the market. He demanded that if any company wants to change the price more than once a month, it should be announced through BERC.
Regarding supply, he said that currently, except for six or seven companies, the rest cannot supply gas. Due to the inability to open letters of credit (LC), the supply of many companies has stopped, leaving several lakh cylinders unused across the country. He demanded that these be filled with gas and released to the market through government initiatives or other companies.
The association's president also raised allegations of police harassment in cylinder transportation. According to him, for security reasons, railings are mandatory on pickup trucks and trucks; without them, companies do not provide cylinders. But because of having railings, traffic police are filing cases. He said that despite writing letters to various government departments on this matter, no solution has been found.
Apart from this, demands were also made to mention the actual price on company invoices and to pay fair transportation fares to those companies that do not deliver cylinders to distributors' warehouses.
Selim Khan alleged that traders are being unfairly fined in raids by the Directorate of National Consumer Rights Protection and mobile courts. Referring to an incident in Bagerhat where cylinders were taken from a distributor's warehouse and a fine was imposed, he called for an end to such raids.
Selim Khan said that during the press conference, he had spoken with BERC Chairman Jalal Ahmed. He claimed that the chairman is reviewing the demands and has assured quick action. However, no immediate comment was available from BERC on this matter.
Earlier, on January 8, traders had kept LP gas supply and sales closed across the country in protest against administrative raids and fines. Later, after a meeting with BERC and assurances that their demands would be met, Selim Khan withdrew the strike that same afternoon.
This program comes at a time when there are allegations of LP gas being sold at higher than the government-fixed price. On October 4, BERC increased the price of a 12 kg cylinder by 252 taka to 1,837 taka. Yet cylinders are still not available at the fixed price in various areas of the capital.
On the other hand, the importers' organization, LP Gas Operators Association of Bangladesh (LOAB), says that the import and supply of LP gas in the country is sufficient. The organization has also taken a position in favor of taking action against those who are selling at more than the price fixed by BERC.
