The country's energy regulator has kept the 'official' price of 12-kg liquefied petroleum gas (LPG) cylinder unchanged at Tk 1,341 each for the month of March, although its market price is 50 per cent higher at around Tk 2,000.
The Bangladesh Energy Regulatory Commission (BERC) fixed the price as part of its monthly routine, and it was effective from 6:00 pm Monday, according to a notice.
Neither the government nor the BERC, however, is doing anything to ensure that the consumers get the fuel at the price fixed by the commission, it has been alleged.
A nexus among the businessmen, traders, distributors and retail sellers has been active over the past couple of months to keep the LPG price well above the BERC-fixed price, market insiders said.
The commission adjusted cooking fuel prices for the domestic market based on the Saudi Aramco contract price for March. It also factored in fluctuations of foreign exchange rates and changes in value-added tax (VAT). The Saudi Aramco CP (contract price) price of propane and butane is US$ 545 per tonne and US$ 540 per tonne respectively for March.
The BERC calculated the price of propane and butane mixture at a ratio of 35:65 as US$ 541.75 per tonne.
The commission has been setting LPG prices for private operators within the first week of every month since April 2021. They can sell LPG in various cylinder sizes - 5.5-kg, 12.5-kg, 15-kg, 16-kg, 18-kg, 20-kg, 22-kg, 25-kg, 30-kg, 35-kg and 45-kg - to consumers at proportionate prices.
The price of LPG supplied through a reticulated system or centralised storage system was fixed at Tk 239.90 per cubic metre for March. The price of the state-owned LP Gas's LPG also remained unchanged at Tk 776.93 per 12.5-kg cylinder.
Sources said currently around 27 LPG operators are in business, although licences were issued to about 58 companies. 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 businesses. The sector employs around 200 road-tankers, 5,000 trucks and 21 cargo-vessels nationwide.
Azizjst@yahoo.com
