Poor monitoring fuels LPG price hike

LPG cylinders are being sold well above the government-fixed price, leaving consumers frustrated. Weak monitoring and poor enforcement by authorities have allowed traders to hike prices at will, making basic cooking fuel unaffordable for many.

Experts have stressed the need for immediate market control and ensuring proper supply.
The Bangladesh Energy Regulatory Commission (BERC) has increased the retail price of liquefied petroleum gas (LPG) to Tk 1,728 for a 12kg cylinder, up by Tk 387 from Tk 1,341 in the previous month.

However, despite this official price, there is no reflection of it in the market—instead, LPG cylinders are being sold at even higher rates. A visit to different areas of the capital on Friday (April 3) found that 12kg LPG cylinders are being sold between Tk 2,100 and Tk 2,200. Although prices vary from shop to shop, none are selling at the government-fixed rate.

According to BERC, the new price has been effective since April 3. Just a month earlier, the price of a 12kg cylinder was Tk 1,341, marking a sharp increase of Tk 387 within a short span.

An LPG retailer Abdus Sobhan in Jatrabari said, “We cannot buy gas at the government-set price from dealers. Since we purchase at higher rates, we are forced to sell at higher prices.”

A consumer expressed frustration, saying, “Even though the government fixes the price, it has no impact in the market. We are compelled to buy at inflated rates.”

BERC said the price adjustment was necessary due to rising LPG prices in the international market and fluctuations in the US dollar exchange rate. According to the commission, Saudi Aramco’s contract price (CP) for April sets propane at $750 per ton and butane at $800 per ton, making the average LPG price $782.50 per metric ton.

The prices of other cylinder sizes have also been adjusted under the new rate structure.