Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed has expressed optimism that increased imports of liquefied petroleum gas (LPG) would help avert any supply crisis of the fuel during the upcoming month of Ramadan.
He has called for urgent cooperation among all stakeholders, including LPG importers, to stabilise supply ahead of the holy month.
"Importing 150,000 tonnes of LPG in January and ensuring delivery of the cargo in February would help prevent a supply crisis during Ramadan," he said at a roundtable titled "Regulatory Challenges in the LPG Market" in the city on Thursday.
The LPG Operators Association of Bangladesh (LOAB) and Energy & Power magazine jointly organised the discussion.
Speakers at the seminar urged regulatory reforms in this sector, saying that the regulatory framework needs restructuring to improve performance.
They stressed that rules and regulation should safeguard the interests of both consumers and companies operating in this sector. If the price spiral of gas could not be brought under control, all reform efforts would prove futile, they said.
Acknowledging the current crisis, Jalal said the instability in the LPG market is largely driven by supply-side constraints.
"We'll implement regulatory reforms that fall directly under the BERC's jurisdiction and engage with the appropriate organisations for those outside its purview," he assured.
Meanwhile, the country has been gripped by unprecedented chaos regarding both the price and supply of LPG over the past few days. In many areas, this essential fuel remains unavailable even at nearly double the government-fixed rate.
A. H. M. Shafiquzzaman, president of the Consumers Association of Bangladesh (CAB), said, "Why will consumers have to pay Tk 2,500 for LPG priced at Tk 1,300? The price-fixing mechanism must be made more transparent."
LPG should be declared as essential product, he said, adding that the government organisations should not be involved with the business of LPG.
The BERC chairman, citing examples of several companies, also stated that those who imported additional quantities did not face any obstacles. He noted that import of LPG had declined in the last few months due to international and domestic factors. He expressed the hope that the supply situation will improve in the short term.
Prof. M. Tamim, Vice Chancellor, Independent University, Bangladesh, presented a keynote paper at the event. He said there are problems in the regulatory structure and system in the LPG sector. He also suggested reforms in the regulatory system and bring all formalities under one regulatory authority.
Prof Tamim noted that the LPG sector has long been facing challenges, with the crisis deepening in recent times. He also pointed out that LPG usage in Bangladesh is increasing steadily, with current demand standing at nearly two million tonnes, which is expected to rise to 3.5 million tonnes in the near future.
Deputy Director of Environment Directorate Shamsuzzaman Sarkar said LPG bottling plants have been reclassified from the red category to the yellow category. He said it is decided that LPG industry will be declared as a green industry. Sarkar also assured that his directorate would provide clearance in seven working days.
Taking part in the seminar, BNP leader Zahir Uddin Swapan said every government should have specific plan for the expansion of energy sector and plans should be taken in the interests of people. He also suggested easing authoritative control on LPG for the sake of people.
LOAB President Aminul Haque said LPG sector is going through a critical phase. "It is a longstanding problem. We are facing problem in international markets and also in domestic ones." He cautioned that investment would not increase unless regulation bottlenecks are removed.
Shahjahan Shaju of Universal Gas said six operators are dominating the market, while the rest have little influence.
Sakib Ahmed Siddiqui of Unitex LP Gas said they are not receiving adequate products from the market. "We are buying the products at high prices. How can we sell in lower prices," he questioned.
Abu Sayed Raza of Meghna Fresh Gas said, "We are facing international and local problems. Price structure system should be rational."
Belayet Hossain of Jamuna Space-Tech said the operators are struggling with political and economic problems, as well as restrictions on import limits.
JMI Chairman Abdur Razzak said five out of 27 operators have the capability to import. Other companies are suffering, he said, adding that if situation goes on like that, the whole market would be in trouble.
Mollah Amzad, editor at Energy & Power magazine, moderated the event.
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