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Bangladesh Energy Regulatory Commission (BERC) has set the price of a cylinder of liquefied petroleum gas at Tk 1,178 for April. Still, consumers report a varied range of prices – all higher than the fixed one.
A buyer in Patuakhali town said he bought a 12 kg cylinder of LPG for Tk 1,350, while another from Bishnupur in Cumilla’s Muradnagar reported a price of Tk 1,280, reports bdnews24.com.
A hotel owner in Mohakhali said he purchased a cylinder for Tk 1,450, while another person in Dhaka’s Eskaton paid Tk 1,500 for one. Again, one buyer in the capital’s Mirpur spent Tk 1,300 on the gas.
Prices also vary for cylinders of other volumes, regardless of what the BERC had fixed.
Retailers point the finger at dealers who blame companies for the higher prices.
The companies say rates set by the BERC are unrealistic.
The price of LPG continued to soar with its use as the government now gives no new household gas connections.
The BERC adopted a policy to adjust the prices of LPG every month in keeping with the global rates.
In the revised prices for April, the BERC set the cost of each kg of LPG at Tk 98.17, more than Tk 20 less than what it was in March.
The price of 12 kg cylinders was brought down by Tk 244 from Tk 1,422 in March. The fresh prices were supposed to take effect from Sunday, but the local marketplaces never aligned with those rates even after three days.
Hasinur Rahman, a resident of Mirpur-2, said he bought a 12 kg cylinder for Tk 1,300.
“No matter whether gas prices rise or fall, we have no choice. And prices never decrease in this country once they go up. But the lower prices of LPG amid Ramadan gave some respite.”
Sohel Mia from Patuakhali town said he bought a 12 kg cylinder of gas for Tk 1,350, while Md Farid Uddin from Bishnupur village paid less for it, Tk 1,280.
Abul Kashem Bhuiyan from Lakshmipur, who bought a 12 kg cylinder at a similar rate, said: “Our income hasn’t increased and yet the price of everything is rising. We’ll at least be able to lead a regular life if the prices of everything are cut by a bit.”
In Cumilla’s Muradnagar, Aqib Islam Maruf, a resident of the Race Course area, said they bought 30 kg LPG for Tk 3,100 while the government rate is Tk 2,495.
Sajib Hossain, a hotel owner in Mohakhali, said he bought a 12 kg cylinder for Tk 1,450. “The rate was different before, there's no consistency -- it fluctuates.”
The retailer, Obaidul Qader, never gives Sajib a money receipt. “He simply comes with a full cylinder and takes away the empty one. He used to give me cylinders from Bashundhara, sometimes from Fresh. Now it’s random. The rates of different companies were uneven before, but it’s the same now.”
When asked why he charged higher prices, Obaidul said he had to pay more for them than the BERC-fixed rate, and the final price includes transportation costs.
“The dealers sell to me at higher prices. And on top of that, it takes more than Tk 100 to transport a cylinder from the Tibet area to Mohakhali.”
A dealer, Taher Quraishi, said they sold 12 kg LPG at Tk 1,210 wholesale. “The company asked to sell at this price. We buy it for Tk 1,200 from the company. I’m also required to meet a target and will face much trouble if I can’t live up to it.”
Hamid Latif Bhuiyan Kamal, the general secretary of LPG Traders Cooperation Association Ltd, said: “We are an exclusive dealer, so we are selling [12 kg cylinder] for Tk 1,200 in wholesale and get Tk 10-15 from companies.”
“We are asking for Tk 1,210 to only those buying 10-12 cylinders in retail. That’s what the company guided us to do. Now, if the company does not compensate for the losses, then we won’t have anything. Our back is against the wall.”
“Some retailers might ask for Tk 1,400 or Tk 1,350 for delivering cylinders to homes or shops, but I have no information on that. If that is the case, inform us, and we’ll instruct them to stop making so much profit. Making a profit of Tk 50-60 is enough.”
Consumers have long complained about the difference in the rates set by the BERC and the original ones.
The companies distributing LPG alleged the prices should be set according to the balance of demand and supply, but it is never reflected in BERC prices.
In February, Azam J Chowdhury, president of the LPG Operators Association of Bangladesh, said: “The parameters BERC uses to set monthly prices are unrealistic. That’s why the prices never become effective.”
The regulatory commission, however, vowed to take action for charging prices higher than the fixed rates.
Md Helal Uddin, a member of BERC, said he received reports of higher retail prices. “We’re new to the commission and are trying to fix these issues.”
“Everybody knows what the prices are. We’ll look into it if someone sells LPG at even Tk 100 more than the fixed prices. We’re trying to diminish the gap between the fixed rates and the market prices.”