Retailers have alleged that liquefied petroleum gas (LPG) prices have already increased in the market ahead of the Bangladesh Energy Regulatory Commission (BERC)’s scheduled price announcement on Thursday, raising concerns over possible pre-emptive hikes.
The regulator is set to announce the retail price of private LPG cylinders at a press briefing, but traders say prices at both wholesale and retail levels began rising days earlier, according to market participants.
“I had to buy LPG cylinders at Tk1,800 each,” said Moghbazar-based retailer Ripon Islam.
Karwan Bazar dealer Abdul Haque said prices started climbing from Saturday.
“Until Friday, we bought cylinders from companies at Tk1,550. Now we have to pay Tk1,700. Companies are supplying cylinders on credit at higher prices in anticipation of a price hike,” he said.
He said supply has declined since Eid and that he now receives about half of the 150 cylinders he used to get daily.
“Sales representatives are saying there is not enough LPG in the market. However, supply remained normal throughout Ramadan,” he said.
Rejecting the claims, Liquefied Petroleum Gas Operators Association of Bangladesh (LOAB) Vice-President Humayun Rashid said companies are adhering to the price set by the regulator.
“We always follow the price set by BERC,” he said.
He said some dealers and retailers may be taking advantage of the situation, as seen in previous instances.
Rejecting concerns over supply shortages, he said imports in March stood between 160,000 and 170,000 tonnes against demand of 140,000 to 150,000 tonnes, ensuring adequate availability.
He added that if the allegations are valid, dealer associations could identify the companies charging higher prices.
He also stressed the need for stricter government oversight at the retail level.
Meanwhile, global prices have surged sharply, adding pressure to the local market.
Saudi Aramco LPG mixture now costs 44.35 per cent higher now, compared to that in February.
