Cylinder Gas Shortage: Allegations of selling at excessive prices

S A Shofiee, Sylhet :

Suddenly, there has been a severe shortage of liquefied petroleum gas (LPG) across Sylhet. Gas is not available even at the higher price set by the government. Many dealers and sub-dealers have closed their shops due to the excessive price. As a result, there has been a general gas shortage in Sylhet. Again, complaints have been received that cylinder gas is being sold at excessive prices in many shops.

Dealers and distributors claim that 40 percent of the cylinders required in Sylhet are not available. Since the wholesale purchase cost is higher than the price set by the government, many dealers and sub-dealers are purchasing less than half of the gas required. As a result, a crisis has arisen. In addition, only 3 out of 30 companies are supplying cylinders to the market, alleging a decrease in international supply.

On the one hand, this is not meeting the demand, and on the other hand, public anger has arisen due to the excessive price. It is learned that the government has fixed the new price of cylinder gas on Sunday (January 4). The price of a 12-kg cylinder of liquefied petroleum gas (LPG) at the consumer level in the country has been increased by Tk 53 to Tk 1,306. On Sunday, the Bangladesh Energy Regulatory Commission (BERC) announced the price of LPG for the month of January. Last December, the price of a 12-kg LPG cylinder was fixed at Tk 1,253.

It has been learned that the price of gas will be increased in January. Therefore, some traders stockpile cylinder gas. Many have stopped selling cylinders from Thursday (January 1) to sell at a higher price. Some have also closed their shops. As a result, for the last 3 days, many shops in the city have not been able to get gas cylinders even at a higher price. After the official announcement of the price on Sunday (January 4), some have opened shops and started doing business. They sell at an excessive price, citing a shortage of supply. Although the price of a 12 kg cylinder is Tk 1,306 as per the government’s price, it is being charged Tk 1,600 to Tk 1,800 per cylinder. Retailers and sub-dealers complain that they have to buy cylinders at higher wholesale prices from dealers and distributors. Therefore, they are also forced to sell them at higher prices. Their profits have decreased compared to before. However, retailers and sub-dealers have also demanded action against those who have made excessive profits in some cases.

It has been found that LPG worth Tk 1,253 has been sold at Tk 1,600 to Tk 1,800 since the first day of the new year. Even then, LPG cylinders are not available in many areas. Retailers say that this situation has arisen due to lack of supply from dealers. CAB says that due to BERC’s silence, large-scale manipulation is going on in the market. This situation is not only prevalent in Sylhet but across the country.

Anisur Rahman, a resident of Shamimabad area of the city, went to buy gas cylinders from a local retail shop and found the shop closed; When he called the shopkeeper, he said that he did not have any gas cylinders. After that, he could not buy gas even after visiting the entire area. After paying a high price, he did not get gas, so he bought food from a restaurant and returned home. He said that he had never been a victim of such a situation before.

Maulana Obaid Ullah, a resident of Subidbazar area of the city, said that he visited several areas of the city and finally bought a cylinder of gas worth 1250 to 1300 taka from Amberkhana on Saturday afternoon for 1800 taka. However, he saw it being sold for 2000 taka on Sunday. When asked about the reason for the price increase, the shopkeepers said that there was a supply shortage.

BERC and LPG Operators of Bangladesh (LOAB) sources say that during the winter, the demand for LPG in the global market increases, so the price increases slightly. This has been compounded by the shortage of LPG import ships. 29 ships transporting LPG regularly have fallen under the US ban. Transportation costs have increased.

Then, ships are not available even if they are wanted. Due to this, LPG imports have decreased last month compared to the previous month. An average of 130,000 to 140,000 tons of LPG is imported every month. 90,000 tons were imported in December. Some companies can charge higher prices by increasing the import cost.

Talking to some of the leading dealers in Sylhet, it was learned that although there is a demand of 80,000 12-kg cylinders per month in Sylhet district, the supply is 25 to 30,000. This is a maximum of 40 to 45 percent of the demand. This has created a crisis in the market. Earlier, 30 companies were supplying cylinder gas, alleging a decrease in supply from the international market, but currently only 3 companies are supplying cylinders. As a result, the crisis is gradually increasing. This is also affecting the price.

In this regard, Md. Kamal Hossain, owner of Kamal Enterprise, one of the leading cylinder gas distributors in Sylhet, said that the companies have reduced supply since last December. In addition, those who are supplying are also currently supplying us at the market retail price. Although the supply of cylinders has decreased, our manpower is still there. As a result, we have to sell a 12-kg cylinder wholesale for 1,400 taka. Taking advantage of that opportunity, sub-dealers and retailers may be selling at an additional price. It is the responsibility of the concerned administration to look into this matter.

He said, we have discussed the issue of our purchase price and wholesale selling price with Consumer Rights. We will soon hold a meeting with them and take an effective decision in this regard. For now, we have to sell the cylinder at a price of 1500 taka in accordance with the purchase price.

In this regard, Debanand Sinha, Assistant Director of the Department of Consumer Rights Protection, Sylhet District, said, “The cylinder gas crisis is not only in Sylhet but all over the country. After receiving complaints about this for a couple of days, we called the traders.

They said that their purchase price is higher than the current market price, so they have to sell at a higher price.
We have instructed them to keep the receipts of purchase from the company.

He said, “We will sit with the traders of Sylhet tomorrow and a decision will be taken on this matter.”
The conscious circles feel that it is not possible to stop such irregularities unless regular market supervision and mobile court operations are strengthened.They have demanded immediate intervention of the administration and ensuring the sale of gas at the price fixed by the government.