LPG traders have withdrawn their planned two-day nationwide strike following a warning from the government that legal action would be taken against anyone attempting to create an artificial crisis or halt market supply.
The decision to withdraw the strike was announced on Wednesday by LPG Gas Traders Co-operative Society Limited following a meeting with the Bangladesh Energy Regulatory Commission (BERC).
Traders stepped back from their programme after receiving assurances that a public hearing regarding their seven-point demands would be held at BERC on 29 October.
Taher Quraishi, treasurer of the society, told TIMES that their next course of action would be decided after observing the outcome of the public hearing.
Earlier on Monday, the society had announced at a press conference at the National Press Club in Dhaka that LPG sales would be suspended across the country on Thursday and Friday.
Traders alleged that long-standing issues, including increasing distributor commissions, ensuring uninterrupted supply, and stopping administrative harassment, remained unresolved.
They had warned of launching a tougher movement after the two-day strike if these issues were not resolved.
On the morning before the strike was called off, Energy Minister Iqbal Hassan Mahmood and Commerce Minister Khandakar Abdul Muktadir, held a meeting with LPG importers at the Secretariat.
Speaking after the meeting, the energy minister said that repeated attempts to raise prices by disrupting commodity supply were unacceptable.
He warned that legal action would be taken against those involved if attempts were made to hold the public hostage by stopping LPG supply or to create market instability.
Mahmood urged traders to resolve disputes through discussion.
Following this firm stance from the government, traders sat for discussions with BERC.
Among the demands of the traders, a key requirement is to increase the distributor commission per 12kg LPG cylinder from Tk50 to Tk150.
Their other demands include ensuring uninterrupted supply and stopping administrative harassment. BERC indicated that decisions on commission-related matters and other demands would be made through public hearing.
Explaining the challenges in LPG supply, the energy minister said that global energy conditions, price fluctuations in international markets, and uncertainty over import sources had created supply hurdles.
He noted that private importers were having to seek alternative sources to manage the impact of war situations. Under these conditions, the government is trying to maintain energy supply for consumers at affordable prices.
BERC was also informed to take necessary measures to keep supply and prices stable.
Explaining the reasons why LPG prices in Bangladesh are higher than in India, the energy minister said that gas in India is supplied at lower prices under specific programmes through government subsidies for beneficiaries.
He added that Bangladesh has no such subsidy, where private companies sell imported LPG in the open market.
Meanwhile, Commerce Minister Khandakar Abdul Muktadir said the government was ready to listen to logical demands regarding traders’ commissions and take initiatives to resolve them.
However, the commerce minister warned that misusing the market system or creating situations against the public interest in the name of pressing demands would not be tolerated.
At the time the strike was announced, an LPG supply shortage was ongoing in various parts of the country. Cylinders were unavailable in many places, whilst in areas where they were found, they were being sold above the government-fixed price.
On 4 October, BERC increased the price of a 12kg cylinder by Tk252, fixing it at Tk1,837.
However, 12kg cylinders are being sold in the market for Tk2,100 to Tk2,500. Traders cited supply deficit as the cause of the crisis.
