Govt-imported LPG to hit market in Oct

The government-imported liquefied petroleum gas (LPG) is all set to hit the domestic market in October, helping keep the domestic cooking-fuel market stable.
"We have taken steps to provide the state-imported LPG to the private sector in October on a pilot basis," Energy and Mineral Resources Division (EMRD) Secretary Saiful Islam told The Financial Express on Sunday.
He further said the domestic market would get state-imported LPG in full swing from early next year.
The state-run Bangladesh Petroleum Corporation (BPC) has moved to import LPG from global sources on government-to-government (G2G) basis following the nod from the EMRD under the Ministry of Power, Energy and Mineral Resources (MPEMR).
The government will only import LPG and supply it to the private sector for smooth marketing and supply of the cooking fuel, said sources.
It will not get involved in storage, bottling, or distribution of LPG, they said.
Sources said the BPC moved formally to import LPG and supply it to the private sector as supply shortage and soaring prices badly affected the market in late last year.
It had then submitted a formal request to the EMRD, urging the authority to import LPG in a bid to intervene in the domestic market, which is dominated by the private sector.
The BPC is in talks with the suppliers from Indonesia, Malaysia, China, and Qatar for importing LPG through G2G arrangements.
The private sector-dominated LPG witnessed price chaos in late last year as most distributors and retailers were allegedly defying government-fixed rates for windfall profits.
Private operators, however, welcomed the government move to import LPG for the local market.
"I welcome the government decision to import LPG and supply it to the private sector," President of the LPG Operators Association of Bangladesh (LOAB) Mohammed Amirul Haque told the FE.
The LOAB leader, however, couldn't elaborate how the BPC will sell LPG to the private sector.
"The government has not yet discussed the mechanism with us," he said.
The price of a 12kg LPG cylinder is now Tk 1,528, which is Tk 357, or 18.93 per cent lower than that in last month (June).
The price of autogas has been reduced by Tk 16.53 per litre, bringing it down to Tk 70.40 for July from the previous Tk 86.93.
Earlier on June 2, BERC had reduced the price of a 12kg LPG cylinder from Tk 1,940 to Tk 1,885, and the price of autogas from Tk 89.50 per litre to Tk 86.93.
The commission has been adjusting the retail-level LPG prices every month since April 2021.
Some 26 operators import about 1.50 million tonnes of LPG from the international market per month, which accounts for around 98 per cent of the country's total LPG demand, while seven are satellite operators.
About 35 million LPG cylinders are in use across the country's LPG business.
Under the sector around 200 road tankers, 5,000 trucks and 21 cargo vessels run nationwide.

Azizjst@yahoo.com