LPG supplying companies have blamed it on price hike in international market
Prices of liquefied petroleum gas (LPG) have increased by at least Tk100 per cylinder over the last week, adding to the burden of people already reeling from high prices of essential commodities.
LPG supplying companies have blamed it on price hike in international market.
During visits to several points in the capital including New Market, Hatirpool and Malibagh, a 12-kg LPG cylinder, usually used for cooking at home, was found selling at Tk1,150-1,200 depending on different brands yesterday, while the price ranged from Tk1,050 to Tk1,100 a week ago.
A 30 kg LPG cylinder sold at Tk2,850-Tk2,950 yesterday, up from Tk2,500-2,600 last week. Besides, a 45kg were found selling at Tk4,150-4250, which was Tk3,800-3900 earlier. The cylinders are used at restaurants and other commercial places.
“We are selling the LPG cylinders at high prices since last week,” said Md Rubel, a New Market-based retailer.
He said prices of all the LPG companies including Bashundhara, laughfs, G-gas and BM LPG increased.
Rubel, however, did not explain why the prices increased. “We get the cylinders at high prices from dealers and sell it keeping a marginal profit,” he claimed.
“We keep only Tk50-60 per 12 kg cylinder in profit and Tk100 for others,” said Maksudul Islam, another retailer at Taltola Market.
He claimed that they had no hand in the price hikes.
“We have to increase LPG prices a little because of higher prices of oil-gas raw materials in international market,” said Humayun Rashid, managing director and CEO, Energypac Power Generation Ltd, which supplies LPG in market under ‘G-gas’ brand.
He said ongoing Iran-US cold war had an effect on oil and gas markets.
“Besides, prices of gas increase in the global market in the season of winter because of increased demand,” Humayun added, hinting further price hikes of LPG in the days to come.
“Saudi Aramco, which controls oil and gas price globally, has increased LPG price $71 per ton recently,” said Akhter Hossain Sannamat, CEO of Omera Petroleum Ltd.
Mentioning the LPG price completely dependent on global market, he said the LNG prices were still lower in the country compared to the other countries.
Rashid, however, claimed that they increased a little but the dealers and retailers sold the products at higher prices.
“Though the LPG supplying companies increased Tk30-50 per 12-kg cylinders, the amount stood at Tk100 in retails,” said Energypac CEO Rashid.
"There is a difference between companies’ wholesale and retail prices in the market as transportation costs and dealer-retailers profit add some value in the prices,” said Abu Taher, a Panthapath-based LPG dealer.
“But this time, the prices hiked as the LPG supplying company increased it,” he said, refuting Rashid’s claim.
The price hike will make middle-class people and people having no gas connection at their home the sufferer, believes Golam Rahman, president of the Consumers Association of Bangladesh (CAB).
He says traders increase the prices as per their wishes taking advantages of any situation or loopholes.
The government should have a policy for regulating LPG prices and keeping it at an affordable level as it is now products of ordinary people, says the CAB president.