LPG cylinder: No one follows the scheduled price

LPG cylinder: No one follows the scheduled price

Liquefied petroleum gas (LPG) is most commonly used for domestic cooking. This month, the price of a 12 kg cylinder is fixed at Tk 1,284. However, consumers have to purchase it for Tk 1,600. The Bangladesh Energy Regulatory Commission (BERC), the regulatory body for the energy sector, has failed to enforce the fixed price for almost two and a half years.

Roshan Ara, a resident of Shewrapara in Mirpur in the capital city, stated that she purchased a 12 kg LPG cylinder on Sunday, 10 September, spending Tk1600, which includes the cost of delivery to her home. Despite displaying the government's price list, it was of no avail. Roshan Ara expressed, "This is not the first time; we have to buy cylinders at an increased price every month."

BERC announced new prices for LPG cylinders on 3 September. Distributors in the LPG sector have indicated that if you exclude the distributor's 50 taka and the retailer's 45 taka, the wholesale price for a 12 kg cylinder should be 1,189 taka. However, companies are currently selling them for prices ranging from Tk 1280-1320. After adding transportation costs and profits, they must sell the cylinders for Tk 1350-1400.

Salim Khan, President of the LPG Cylinder Distributors Association nationwide, informed Prothom Alo that selling LPG cylinders to consumers at fixed prices is not feasible. This is because these cylinders have to be purchased from the company at a price higher than the retail price set by the government. According to him, the price should be determined through coordination between the company and the distributors.

On 4 September, Madina restaurant purchased 45 kg LPG cylinders from MS Traders in Khalpar area of Sector 12 of Uttara in the capital. The price paid was Tk 5,100, whereas the government-set price is Tk 4,815.

MAH Akash, speaking on behalf of MS Traders, explained to Prothom Alo over the phone, "It costs Tk 4,900 for each cylinder to be bought from the wholesalers and after meeting transportation expenses. Therefore, we have to charge an additional 200 taka."