Energy and mineral resources division’s senior secretary Anisur Rahman said that the government would monitor the market so that the new price of liquified petroleum gas (LPG) is implemented properly, reports UNB.
He said this while addressing a webinar on “BERC’s LPG Pricing and Its Sustainability” organised by Energy and Power magazine on 17 April.
The energy secretary’s remarks came against the backdrop of Bangladesh Energy Regulatory Commission’s (BERC) announcement to fix the price of LPG with effect from 12 April.
As per the new prices, the private companies will have to sell a 12 kg LPG at Tk 975 while LP Gas Company Ltd, the state-owned company, will sell its 12.5 kg LPG at Tk 591 at the retail level.
But many consumers apprehend that they will not get the LPG at the prices fixed by the BERC as there is no strict monitoring by the government about its enforcement.
The energy secretary said that monitoring market became difficult due to lockdown situation.
“But after lockdown, we will be going for strict monitoring and it will be the duty of the all the concerned agencies of the government to implement the new LPG price,” he said.
Before the price fixing by BERC, the private companies had been selling 12 kg LPG in the retail markets at Tk 1100 -Tk 1200 while those of the state-owned company over Tk 700.
About 20 private companies have been operating in the market with more than 95 percent market share by annually importing 1.2 million tonnes of bulk LPG from mainly Middle-East.
Meanwhile the state-owned LP Gas Company is locally producing 25,000 tonnes of LPG from locally produced condensates at different gas fields.
The webinar was also addressed by energy experts professor M Tamim, professor Ijaz Ahmed, BERC member Syed Mokbul-e-Elahi, and Bashirul Haque.
Bashundhara LPG’s head of marketing Zaharia Jalal made a presentation on the issue.
He said that BERC while fixing the new price did not consider auxiliary costs in the LPG business.
“As a result, the LPG businesses will face trouble to make the price sustainable,” he said.
Professor M Tamim said that the BERC should have declared a pricing formula instead of fixing a price in the market.