Curbing consumers' hassle: LPG market monitoring expected to surge Commerce Minister
Business Desk :
Commerce Minister Khandaker Abdul Muktadir on Thursday said the government will strengthen Liquefied Petroleum Gas (LPG) market monitoring through local administrations to ensure that consumers do not face harassment and that no one can engage in market abuse at the retail level.
The minister made the remarks while speaking to journalists after a meeting with representatives of LPG importers and suppliers at the conference room of the Ministry of Commerce at the Secretariat this evening. The meeting discussed the prevailing situation of the market price and supply of LPG, reports BSS.
Referring to recent media reports, he said there have been concerns about a possible supply gap in the LPG market. Reports indicated that the government-fixed price of a 12kg LPG cylinder, set at Taka 1,356, was being exceeded in some retail outlets, said a Commerce Ministry press release.
“To ensure that the LPG supply situation remains satisfactory in the coming days and that no unbearable situation is created at the consumer level, we sat with LPG importers and relevant government support and regulatory agencies, including the central bank. We had a meaningful discussion,” he said.
Muktadir noted that stakeholders in the sector raised several practical challenges affecting their operations. “We have taken note of those issues and will work to resolve them, as far as possible, so that they can continue their business activities smoothly,” he added.
Responding to a question about whether LPG cylinder prices would revert to the previous level, he said the importers and bottling plant owners present at the meeting were not directly responsible for retail-level price irregularities.
“Sometimes, retailers attempt to take advantage of the situation. Importers have no involvement in such practices. To prevent consumers from facing inconvenience or market abuse, we will increase monitoring through local administration from the coming days,” he said.
When asked again whether prices would return to the earlier rate, he replied, “Yes, they will.”However, he said importers had placed certain arguments regarding import-stage pricing and proposed a review of prices based on data to ensure business sustainability.
“If their claims are supported by data and are reasonable, those will certainly be considered. No one can be expected to run a business at a loss,” he said.
Replying to another question, he clarified that there was no decision at the moment to increase LPG prices.
There are 33 licensed LPG companies in the country.
Of them, around 10 companies account for nearly 70 percent of total imports. In response to a query about inactive operators, the Minister said that following the events of August 5, several operators had become inactive, contributing partially to market gaps.
“Most of our importers purchase from the spot market rather than entering into future contracts. As a result, market volatility sometimes makes them active and sometimes inactive,” he said.
He also mentioned that many large business groups face constraints due to banks’ single exposure limits, which act as a barrier in some cases. “These issues have come before us, and we will work on them in the coming days,” he added.
Responding to a question about storage constraints at Bangladesh Petroleum Corporation (BPC), the Commerce Minister acknowledged the problem and said private sector importers extended cooperation.
“They have offered to allow the use of their storage facilities if BPC wants to import LPG directly at this moment. We welcome this initiative,” he said. Commerce Secretary Mahbubur Rahman was present at the meeting.
