Liquefied petroleum gas (LPG) traders have warned of ceasing the supply and marketing of LPG across the country from today (Thursday) if the energy regulatory commission does not fix fresh prices and the administration does not stop "harassment".
LP Gas Traders' Cooperative Society Ltd at a press conference on Wednesday demanded that the Bangladesh Energy Regulatory Commission (BERC) immediately readjust LPG prices, increase distributor commissions from Tk 50 to Tk 80, and raise retailers' commissions from Tk 45 to Tk 75.
They also called for an end to what they described as harassment and fines imposed on distributors through administrative drives.
Speaking at the press conference, Selim Khan, the president of the cooperative society, claimed that idle (unused) LPG cylinders were raising their overall costs.
All the 27 LPG companies supplied 55 million cylinders, but only 12.5 million were currently being refilled, leaving 42.5 million empty, he said.
He said the LPG distributors were incurring losses as around 60 per cent cylinders of market requirements remained empty and they had to count costs on 40 per cent of moving LPG cylinders.
Meanwhile, the LPG Operators Association of Bangladesh (LOAB) has urged the government to reform the tax structure to stabilise the LPG market.
In a letter to the National Board of Revenue (NBR), it proposed withdrawing the existing 7.5 per cent VAT and 2.0 per cent advance tax at the production stage and instead imposing a single 10 per cent VAT at the import stage.
LOAB President Mohammad Amirul Haque argued that this would ease liquidity problems, improve transparency, prevent tax evasion, and ensure fair competition.
The Ministry of Power, Energy and Mineral Resources recently met stakeholders to address the crisis, deciding to request VAT reductions and declare LPG a "green industry" eligible for low-interest loans.
Separately, the LOAB protested the attack at the residence of Smart Group of Industries Chairman Mustafizur Rahman, who also owns BM Energy, and urged the inspector general of police (IGP) to take necessary action against the offender.
Azizjst@yahoo.com
