• Wednesday, Jul 28, 2021
  • Last Update : 12:57 am

Private LPG operators demand fixing price based on 'practical assessment'

  • Published at 06:13 pm June 15th, 2021
web-lpg-gas
Liquefied Petroleum Gas cylinders Mehedi Hasan/Dhaka Tribune

'We want BERC to fix the LPG price on the basis of practical assessment, not on assumption'

Private operators of LPG have demanded that the Bangladesh Energy Regulatory Commission (BERC) set the price of their products on the basis of “practical assessment” operating cost.

“We want BERC to fix the LPG price on the basis of practical assessment, not on assumption”, said Azam J Chowdhury, president of LPG Operators Association of Bangladesh (LOAB), at a press conference at a hotel in the city on Tuesday.

He claimed that the LPG operators have been incurring huge losses following the price fixed by the energy regulator as the operating cost was not properly calculated.

He also alleged that local administrations have been arresting many local distributors for which they are suspending their business.


Also Read - LPG cylinders sold for more than govt-set prices


The function was also addressed by Tanzeem Chowdhury of Omera LPG, Zakaria Jalal of Bashundhara LPG. 

The BERC has been announcing a fixed price of LPG for every month in compliance with a High Court order since April this year for which the LPG now stands at Tk842 instead of previous price of over Tk1,000.

Recently, the BERC again decided to hold a public hearing on July 7 next to re-set its pricing formula in response to a demand of the LPG operators and against this backdrop, the press conference was convened by the LOAB.

Explaining the current formula of LPG pricing Azam Chowdhury said the BERC fixes the price on the basis of a fixed-cost and some variable operating costs.

“We don’t have any difference of opinion with BERC on fixed cast as it is related with the Saudi CP (contract price), he said adding if the regulator fails to fix the LPG price on a practical basis an uncertainty will create in business and the regulator will fully be responsible for it.

“Because, the BERC’s behavior will force many operators to stop their business to avert losses”, he added.   

In a presentation, Zakaria Jalal claimed that there is a gap of Tk150 between their calculation of operating cost and the calculation of BERC.

He said  BERC did not consider an administrative cost of Tk50 per 12 kg LPG while distribution cost was calculated at Tk20 against actual cost of Tk40, retailer’s cost was calculated at Tk27 again actual cost of Tk80 cylinder cost was estimated at Tk28 against a cost of Tk56. 

He said the LPG now became a $3 billion industry across the country by the investment of private operators and its production increased to 1.1 million tons in 2021 from 100,000 tons in 2016 following a government supportive policy.

Jalal also said if the LPG is continuously selling at the current price, it will not be possible for many operators to sustain the business.

54
Facebook 51
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail