Dealers risk losing licence for LPG price hike

Dealers risk losing licence for price hike of liquefied petroleum gas (LPG) as such forewarning comes from the minister after finding the fuel selling at higher than the government-set rate.
The State Minister for Power, Energy and Mineral Resources, Nasrul Hamid, said Sunday that LPG was being sold at prices higher by Tk100-200 than the price set by Bangladesh Energy Regulatory Commission (BERC).
Stressing the strengthening of market monitoring to check price fixing, he said licences of dealers "will be revoked, if necessary, to keep the LPG price at par with the BERC-set price".
Mr Hamid was speaking at a workshop titled 'Secured Use of LPG in Hotels and Restaurants' organised by the BERC at the TCB Bhaban at Karwan Bazar in Dhaka.
Presided over by the BERC chairman Nurul Amin, the workshop was attended by different stakeholders, including representatives of LPG marketers.
About the marketing process Mr Hamid told his audience that the LPG operators have dealers throughout the country. "The dealers appoint agents, and the agents appoint sub-agents. Thus the LPG price increases".
The BERC is monitoring the market on a random basis in their limited capacity, he said, adding: "But it's the responsibility of the dealers to ensure fixed prices in their respective areas. BERC should also find a way to bring the dealers under their regulatory process."
Against the backdrop rising incidence gas-cylinder blowouts, Mr Hamid said, "We very often see several LPG cylinders kept in front of stoves in hotels and restaurants without any security measures…Any kind of accidents can happen anytime."
He also stressed the need for a new, updated, modern and time-befitting LPG policy as the use of the gas has increased manifold.
Consumption of LPG has increased to 1.45 million tonnes from 60,000 tonnes in 2009, he said, adding that now the gas is being used in different sectors, like houses, motor vehicles and industries.
The junior minister requested the BERC authorities to accommodate the opinions of the stakeholders in preparing a new policy for the LPG.
"It must also be ensured that the LPG users are abiding by the rules, regulations and policies of the government."
He opines most of the accidents involving LPG are taking place due to leakages in gas cylinders.
Government agencies like Rajdhani Unnayan Katripakha (RAJUK), LPG operators and energy regulators have the responsibility to monitor whether or not the safety measures are being followed.
"RAJUK should provide approval for building plans after checking whether LPG lines are properly designed or not," he suggests.
He said the LPG cylinders leak due to mishandling by operators, dealers, sub-dealers and sellers.
"Many still come for gas lines, which are not needed for now. LPG should be widely popularised from now on," he added.
He also said that most of the gas pipelines of the largest gas-marketing and- distribution-company Titas Gas are 50-60 years old and have leakages in it.
Titas Gas Transmission and Distribution Company Ltd (TGTDCL) has chalked out a plan to replace the outworn pipelines with newer ones, he said. "But it will take 5-6 years to fix the pipelines."
To ensure proper use the country's gas resources in future an advisory committee has been formed, he informed the meet.
The workshop was also addressed by energy and mineral resources division secretary Nurul Alam, Petrobangla chairman Zanendra Nath Sarker, President of Bangladesh Hotel and Restaurant Owners Association Imran Chowdhury, Omera Petroleum's top official Daudur Rahman Khan of and top official of JMI LPG Ltd Liakat Ali.
Prof Masud Helali of Bangladesh University of Engineering and Technology (BUET) delivered a keynote presentation at the workshop.

Azizjst@yahoo.com