LPG fixed prices must be ensured for consumers

Bangladesh Energy Regulatory Commission (BERC) fixes the price of liquefied petroleum gas every month, but consumers buy the key fuel at a higher price due to non-compliance by importers, distributors, and retailers.

On August 2, the BERC fixed the retail price of a 12kg LPG cylinder at Tk 1,140.

Consumers in different parts of Dhaka, however, said they bought a refilled 12-kg cylinder at no less than Tk 1,400.

The retailers blame the distributors while the distributors point fingers at the importers.

But importers lay the blame on shortage of imports, volatile foreign exchange rates, and challenges in opening letters of credit.

However, market experts and consumer rights defenders have said all these are lame excuses, stressing that the BERC fixes the rates every month after receiving input from the stakeholders.

They have also stressed that there is a lack of strict monitoring, which only helps the blame game, causing suffering to consumers.

During recent visits to the capital’s Kachukhet, Shewrapara, Tejturibazar, Karwan Bazar, Bongshal, Banasree, and Moghbazar areas, a 12-kg LPG cylinder was sold even at Tk 1,500 in many places.

Moreover, distributors have mentioned supply shortfall as another factor contributing to LPG’s high price.

Distributors often receive text messages about LPG price updates from the importers, also known as operators.

In a message in mid-August, one importer mentioned the rate of a 12-kg cylinder as Tk 1,197, a 33-kg cylinder as Tk 3,067, a 35-kg as Tk 3,246 and a 45-kg cylinder as Tk 4,164.

As a quasi-judicial body, the BERC can take necessary action against the companies.

After a long judicial fight, the pricing authority was awarded to the BERC by the High Court in 2020.

They are obliged to ensure energy justice for consumers.

They should force the companies to sell the product at a fixed price.