Govt raises LPG price, will the market now behave?

The price of liquefied petroleum gas (LPG) has risen once again, putting additional pressure on household energy expenses. However, with limited market oversight, consumers are finding it difficult to purchase cylinders at the government-set price.

According to the Bangladesh Energy Regulatory Commission (BERC), the price of a 12kg LPG cylinder has been raised by Tk50 to Tk1,356 for February, while autogas has been increased by Tk2.34 per litre to Tk62.14. The revised prices have been in effect since 6pm yesterday.

Following its monthly pricing mechanism, BERC sets LPG prices based on international market trends and exchange rate fluctuations. However, the market has recently faced allegations of price manipulation, supply shortages, and inadequate monitoring, leaving consumers struggling despite government-set price caps.

Buying LPG at the official rate has become nearly impossible for many. Sharmin Chowdhury, a housewife from Banasree, said, "For the past two months, I have had to pay Tk2,500 for a 12kg cylinder. The price I pay is almost double the government-determined rate." 

Abdul Karim, a small restaurant owner in Mirpur, added, "My cooking costs have doubled. Dealers say there is a shortage, so I have no choice but to buy at higher prices. If this continues, small businesses like ours will not survive."

Engineer Md Helal Uddin Talukdar, director (Gas) of BERC, acknowledged the challenges: "We have a supply of only about half of the total demand. Under such circumstances, price capping usually does not work. We fix the LPG price following a monthly tradition, but market oversight is not our job. To monitor the LPG market, we write to different government agencies but help hardly comes."

The previous price adjustment was made on 4 January, when BERC increased the price of a 12kg cylinder by Tk53 to Tk1,306, and raised autogas prices by Tk2.48 per litre to Tk59.80, inclusive of VAT.