ASIFUR RAHMAN

Retailers are not following the fixed price of bottled liquified petroleum gas using the excuse of a supply crunch and a dated pricing method.

For January, Bangladesh Energy Regulatory Commission fixed the price of a 12kg cylinder, the most common form of marketing the fuel, at Tk 1,232.

But The Daily Star found that consumers are not getting LPG at that price.

In different areas of Dhaka city, 12 kg LPG cylinders are selling for Tk 1,500 to Tk 1,750.

But Md Khorsed, an LPG retailer in the capital’s Moghbazar area, was found asking Tk 1,800 for the 12kg LPG cylinder yesterday.

Asked why he was selling at a premium he mentioned a supply crisis: the company is not providing LPG as per demand.

“We sold at that [government-fixed] rate 15 days earlier. After that, we had to purchase LPG at higher costs,” he added.

The Daily Star talked to at least 10 LPG users who bought a bottle in the last two weeks from Banasree, Eskaton, Moghbazar and Dhanmondi. All of them said they got a 12kg bottle at Tk 1,400 to Tk 1,700.

“The LPG price is skyrocketing -- we are in a hostage situation,” said Abu Younus, a resident of Gendaria.

This has also impacted small businesses like Jarina Begum’s tea stall in the Eskaton area, which are unable to pass on the burden of higher production costs to customers.

“We are struggling to sell a cup of tea at Tk 10. If I increase the price more, no one would buy tea from me,” said Begum, who purchased a 12 kg cylinder yesterday for Tk 1,750.

The situation is the same outside of Dhaka. The Daily Star spoke with several LPG consumers in Chattogram, Mymensingh, Netrokona, Rajshahi and Khulna. They said they had to spend Tk 1,350 to 1,600 to get a 12kg cylinder.

After 15-20 days, Shamsur Rahman Nobin, a retailer in Rajshahi’s court station area, was able to get LPG bottles from his wholesaler for Tk 1,550. He is selling those for Tk 1,620 -- Tk 400 more than the government-fixed retail price.

The importers and distributors blamed the higher price on the middlemen as well as an incompatible price method of BERC.