Dhaka:Residents in Dhaka are grappling with liquefied petroleum gas (LPG) cylinder shortages as retailers hike prices above government-fixed rates, fearing administrative raids.
According to United News of Bangladesh, despite the latest price adjustments by the Bangladesh Energy Regulatory Commission (BERC), LPG cylinders remain scarce, with some retailers charging as much as Tk 2,500 for a 12kg cylinder compared to the official price of Tk 1,837. This disparity arises from a structural gap between the estimated national demand of 1.4 to 1.5 million metric tonnes annually and the constrained supply chain.
Retailers report that LPG suppliers have increased prices to around Tk 2,200 per 12kg cylinder following BERC’s recent price hike. They anticipate that new stock will enter the market from Tuesday, with prices potentially reaching Tk 2,300 to Tk 2,400 by Wednesday.
The chronic market distortion is attributed to primary LPG distribution companies invoicing dealers between Tk 2,100 and Tk 2,200 per cylinder, making it difficult for retailers to adhere to government-fixed rates. Abdul Wares, an LPG supplier, highlighted the challenges of maintaining official rates due to additional transport and labor costs, pushing consumer prices to Tk 2,400.
This month, BERC adjusted the retail price of private LPG to Tk 153.06 per kg, including VAT, up from Tk 132.08 in September. Consequently, prices for various cylinder sizes have increased, with notable hikes for autogas and reticulated LPG liquid forms.
The regulator attributed the price surge to a rise in international contract prices, particularly Saudi Aramco's Contract Price for propane and butane. Despite BERC’s efforts to enforce proper VAT invoicing and price caps, business representatives call for a realistic assessment of national demand and improved import channels to stabilize the LPG market.