Despite repeated increases in liquefied petroleum gas (LPG) prices, consumers are still unable to buy cylinders at the rates fixed by the Bangladesh Energy Regulatory Commission (BERC). Buyers say they are paying Tk400-500 more than the regulated price for a 12kg cylinder.
Retailers, meanwhile, say they are having to purchase gas at higher prices, while supply shortages have added to the difficulties. As a result, households and small businesses alike are struggling to manage the rising cost of LPG.
On Monday, BERC raised LPG prices again amid a shortage in the market. The price of a 12kg cylinder was increased by Tk223 to Tk2,060. Earlier, on October 4, the price of the same-sized cylinder had been raised by Tk252.
The latest prices came into effect at 8pm on Monday, according to BERC. Retailers have since started selling cylinders at the revised rates. Prices were increased across all LPG cylinder sizes, ranging from 5kg to 45kg.
On Tuesday, this correspondent visited Mirpur sections 2 and 6 and Agargaon in the capital and spoke to LPG buyers, users and retailers. They said repeated price hikes were making it increasingly difficult to meet their expenses.
Ahmed Sohel, a resident of Khilgaon who uses LPG for cooking at home, said his family of three uses one 12kg cylinder a month.
“I buy a 12kg gas cylinder every month, and it usually lasts us the whole month. But the price keeps going up. It is becoming difficult to manage. On top of that, we cannot even buy it at the price fixed by the government. We have to pay Tk400-500 extra.
“When the official price was around Tk1,800, I had to buy a cylinder for Tk2,200-2,300. Now that the government has fixed the price at more than Tk2,000, I will probably have to pay over Tk2,500. If the prices of everything keep rising like this, I do not know how we will manage,” he said.
Mohammad Shahidul Islam, who runs a hotel in Mirpur-2, also uses 12kg LPG cylinders for cooking.
He said that even when the official price was around Tk1,850, he had to pay Tk2,100-2,150 for each cylinder.
“The government has now fixed the price at Tk2,060. I assume retailers will charge even more. I have not bought a cylinder since the latest price hike, so I cannot say exactly how much they will charge,” he said.
He added that he bought gas from retail sellers rather than directly from distributors, which meant he regularly paid more than the government-fixed price.
Shahidul said he operated two stoves, each using a separate cylinder — one for making roti and the other for paratha. He needed two cylinders every three days.
“Gas prices are rising, and the cost of other ingredients, particularly flour, has also increased. With everything becoming more expensive, it is difficult to keep the business running.
“We currently sell each paratha for Tk10, but at the present cost, it is no longer viable to sell them at that price. We will either have to raise prices or shut down the business. The situation is already very bad. If gas prices keep rising like this, we may eventually have to close the hotel,” he said.
He added that small businesses like his could not afford to buy gas at such high prices. Previously, he had paid Tk200-300 above the official rate and expected retailers to charge even more following the latest increase.
Fakhruddin, who runs a tea stall in Agargaon, said LPG was essential to his business.
“I bought a 12kg cylinder for Tk2,300, which lasts me 11 to 13 days. Now the price has gone up again. I cannot remember what the official rate was when I bought it for Tk2,300, but with the latest increase, cylinder sellers will raise their prices too. This time, they may ask for around Tk2,500,” he said.
He said the rising cost was affecting his business, but he had little choice but to continue.
“What can I do? If I raise the price of tea, customers may stop buying it. I will have to try to cover the additional gas costs by selling other products. If I make a loss on one item, I will have to make it up through another,” he added.
Mohammad Mamun, an LPG retailer at Safowan Enterprise in Mirpur-6, said he currently stocked only 12kg cylinders.
He said his shop usually sold products from several brands, including Petromax, Uni Gas and iGas, as well as Bashundhara, Beximco and Teer, although some brands were currently unavailable.
According to Mamun, a 12kg Petromax cylinder, including the gas and cylinder, costs Tk4,000, while cylinders from other companies cost around Tk3,500. Prices vary depending on the brand and the cost of the cylinder itself.
He said a 12kg refill of Uni Gas cost Tk2,500, while refills from Petromax and iGas cost Tk2,300.
“Because gas prices have increased, we also have to buy it at higher rates. A cylinder now costs us Tk2,300. How are we supposed to sell it? We have to keep a profit of Tk100-150. But when customers hear the price, they argue with us, accusing us of charging Tk200 extra,” he said.
Mamun said the rising prices were making the business increasingly difficult to operate.
“Customers often return empty cylinders, which creates another problem. Each company has its own cylinder system, and you cannot use or exchange one company's cylinder for another company's gas. We have to explain this to customers.
“I do not want to argue with them. Supplies are already limited, and having to sell products bought at higher prices is creating disputes with customers. It is becoming difficult to run the business this way,” he said.
He added that he had previously left the LPG business and taken up a job because of frequent disputes with customers over prices, but later returned to the trade.
“Now the same situation is emerging again,” he said.