The energy ministry has drafted an LPG policy titled "LP Gas Integrated Policy-2021" with consolidating its position to 'control or supervise' different issues relating to doing businesses in this sector.
As per the draft of the policy, state-run Bangladesh Petroleum Corporation (BPC) would fix fees of different services or licences related to LPG (liquefied petroleum gas) businesses.
The country's energy regulator -- Bangladesh Energy Regulatory Commission (BERC) -- opposed the draft policy, saying that it would establish dual-authority in this sector and create fuel 'anarchy,' once it is adopted.
It would be contradictory and irrelevant to the existing BERC Act-2003, the commission stated.
According to the draft of the policy, any individual or organisation must have to get approval from the government before engaging in business as LPG operator and establish any LPG plant or any infrastructure.
After obtaining approval and licences from different state-run entities, the interested parties must have to apply to the Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) within four years to get the final nod.
To build any LPG plant or infrastructure, the interested parties must have to apply to the Energy and Mineral Resources Division.
The interested individual or organisation must have to ink deal separately with the BPC after getting the nod from the government before initiating businesses in the LPG sector.
Under the draft of the policy, the LPG operators must have to obtain approval from the Energy and Mineral Resources Division before appointing its franchises for carrying out LPG businesses.
Under Article 27 of the BERC Act-2003, no person shall engage himself in the businesses like power generation, energy transmission, energy distribution and marketing, energy supply and energy storage unless he is empowered by a licence or exempted from having it under this Act or any other Acts.
The draft of the LPG policy also spells out that the government would be able to cancel approval and licence for LPG operators and its franchises if they fail to comply with its rules and regulations.
But Article 30 of the BERC Act-2003 states that licence can be renewed, cancelled and revised following a process prescribed by regulations.
The BERC in a written reaction also stated that the draft of the new policy might be tantamount to violation of the High Court orders on different issues regarding the LPG sector.
When contacted, energy secretary Md Anisur Rahman said the new policy would be an integration of the previously-adopted three policies in the LPG sector namely 'LPG Bottling Plant Installation Policy-2016'; 'Liquefied Petroleum Gas (Auto Gas) Re-fuelling station and Conversion Workshop Installation, Operation and Maintenance Policy-2016' and 'LP Gas Operational Licensing Policy-2017.'
"It will streamline the country's LPG sector, once it is adopted," he added.
Mr Rahman, however, said the policy would be adopted after getting comments and reactions from stakeholders.
LPG consumption in Bangladesh is increasing rapidly due to the mounting domestic demand.
Currently, BPC fixes and announces retail level LPG price for its product occasionally while the private sector's retail level LPG price is fixed by the investors without any public announcement.
BPC reduced its retail level LPG price by around 14 per cent to Tk 600 per 12.5 kg cylinder in July this year from Tk 700 previously.
However, the end-users very rarely get BPC's LPG at the government-fixed price.
The private sector is currently selling each 12-kg cylinder LPG within the range between Tk 1,000 and Tk 1,100 at retail level. The BERC held a public hearing on fixing of LPG price in local market on January 14 in line with a High Court instruction.
The verdict on LPG prices is due soon, said sources.
More than 25 LPG companies, which vary in sizes and investments, are now operating in Bangladesh market.
Different sorts of infrastructural and logistic support are also there in the LPG sector.
LPG consumption in Bangladesh has already reached an estimated 1.5 MTPA, which was around 1.0-million tonnes back in 2018. Bangladesh consumed nearly 650,000 tonnes of LPG in 2017 which was around 400,000 tonnes in 2016 and 250,000 tonnes in 2015.
LPG consumption has been growing rapidly since 2016 in households, commercial units and the use of LPG as an auto fuel in vehicles mainly due to favourable government policy, duty waivers on import of LPG and its necessary machinery.
The government strategy to popularise LPG consumption across the country instead of piped natural gas to cope with the fast-depletion of local natural gas reserves is also prompting local and international firms to come and invest in the LPG sector heavily.
Government's continued drive against illegal piped gas connections especially in households and commercial units also helped increase LPG use in Bangladesh.
Seeing the growth of LPG uses in Bangladesh, the number of LPG operators also increased rapidly.
Azizjst@yahoo.com
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