Market monitoring teams of the Directorate of National Consumer Rights Protection (DNCRP) have found that 12 kg LPG cylinder is being sold at between Tk 1,600-Tk 1,800 in the market instead of Tk 1,498, fixed by the Bangladesh Energy Regulatory Commission (BERC).
The BERC fixes the price of LPG at the beginning of every month as per law.
“From LPG operating companies’ selling points to retailers’ selling points—everywhere the products are being sold at inflated prices”, said AHM Shafiquzzaman, Director General (Additional Secretary) of the DNCRP.
He was holding a meeting with LPG operators, dealers and retailers at the DNCRP headquarters in the city on Wednesday.
Against the allegation of the DNCRP, all the LPG operators, dealers and retailers were blaming each other.
In addition, the LPG operators were also blaming the dollar crisis, devaluation of local currency and banks’ reluctance in opening LC, while the Consumers Association of Bangladesh (CAB) was blaming inaction of the BERC and DNCRP for anarchy in the LPG market.
“We have to pay banks Tk 106 as dollar exchange rate against the previous rate of Tk 85”, said Mahbub Alam of Meghna LPG. He said the freight charge of shipping has gone up to $120 from $90 per tonne while costs of electricity and transportation have increased.
“All these have pushed up our production costs, but the BERC is not considering such costs while it announces price every month”, said Jakaria Jalal, head of marketing of the Bashundhara LPG.
Representatives of dealers and retailers said that the BERC has not increased the margin of dealers despite all their costs having gone up.
BERC secretary Khalilur Rahman disagreed with the allegations of the LPG operators and dealers saying that the regulator has asked them for submitting valid documents of their cost escalation.
“But none of the dealers and LPG operators submitted the valid documents. Rather they sought more time in this regard”, he added, without any valid documents, BERC cannot consider their claims of cost escalations.
CAB representative Kazi Abdul Hannan said both the BERC and DNCRP substantially failed to protect the rights of the consumers.
The consumers are being the ultimate victims and they are paying the price of the regulatory bodies’ failure, he added, saying his office will submit a recommendation to the government’s higher authority to take further action in this regard.
He said it will be unwise to take action against companies like Bashundhara whose market share is over 20 per cent.
“If we stop their production, do you know what will be the impact on the market?” he told a reporter responding to his question about the non-action by the DNCRP.
He also said that the ground reality is that the BERC raised the 12 kg LPG price by Tk 266 for the current month. But the price has gone up further in the local market.
“If again the LPG price is raised by Tk 300, the market will not be cool. Rather, market operators will raise it further. We experienced this in the case of sugar price”, he said.
