A technical committee of the Bangladesh Energy Regulatory Commission (BERC) has proposed raising the price of a 12kg liquefied petroleum gas (LPG) cylinder by Tk139 to Tk1,976, while importers, distributors and retailers pressed for higher commissions at a public hearing on Thursday.
The committee also recommended increasing the price of autogas by Tk9.26 a litre to Tk93.88 from Tk84.62 during the hearing at the BIAM Foundation auditorium in Dhaka.
The proposed increase comes less than a month after BERC raised the official price of a 12kg cylinder by Tk252 to Tk1,837 on 4 October. Consumers, however, complained that the regulated price was not being followed.
The committee proposed increasing private operators’ LPG storage and bottling charge from Tk16.74 to Tk23.48 a kilogramme, distributors’ commission from Tk50 to Tk80 per cylinder and retailers’ commission from Tk45 to Tk70.
Industry operators demanded substantially higher margins.
Omera sought a commission of Tk478 per 12kg cylinder, Petromax Tk349, Delta Tk360 and Meghna Group Tk300, against the existing Tk200 commission cited at the hearing.
Distributors demanded Tk150 per cylinder, triple their current Tk50 commission, while retailers sought Tk70 instead of Tk45. Autogas station owners proposed raising their commission from Tk8 to Tk11 a litre.
Industry representatives attributed their demands to rising freight and operating costs.
Meghna Fresh LPG Chief Marketing Officer Abu Sayeed Raja said freight-inclusive premiums had climbed to between $250 and $400 a tonne from $80 to $120 before the conflict in West Asia.
He called for a pricing structure that would cover operating costs without encouraging sales above the regulated rate.
Consumer representatives challenged the demands, questioning why official prices were routinely exceeded.
Journalist Sirajul Islam questioned why consumers had paid as much as Tk2,500 for a cylinder last December without a satisfactory explanation.
Islam alleged that companies were withholding LPG in anticipation of price increases while BERC failed to intervene.
He claimed consumers were paying Tk400 to Tk700 above the regulated price and that a 12kg cylinder could not be found for less than Tk2,200 in Dhaka.
The hearing followed a threatened strike by the LP Gas Traders Cooperative Society Limited, representing distributors and retailers.
The organisation had called a stoppage for 15 and 16 October but withdrew it on 14 October following discussions with the government.
BERC announced the hearing that same day, prompting participants to question whether the review had been arranged under pressure from businesses.
The commission will consider the technical committee’s recommendations and stakeholder submissions before announcing any revised prices and their effective date.
Until then, the proposed Tk1,976 cylinder price remains subject to regulatory approval.
