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‘Change in LPG price every month illegal’


Published : 17 Apr 2021 09:34 PM | Updated : 18 Apr 2021 12:21 AM

Recently, the Bangladesh Energy Regulatory Commission (BERC) has fixed the retail price of Liquefied Petroleum Gas (LPG). The commission also said the price will be adjusted in every month, which is illegal, claimed Consumers Association of Bangladesh (CAB). 

CAB has sent a letter to the Bangladesh Energy Regulatory Commission (BERC) on April 15 in this connection.

The Bangladesh Energy Regulatory Commission (BERC) has set retail prices for the first time by lowering the price of Liquefied Petroleum Gas (LPG) at the consumer level on April 12.

However, the price will be adjusted every month based on the Saudi Contract Price (CP) of Propane and Butane. Propane and Butane are the two components of LPG, which Bangladesh imports from the international market. 

In a letter to the BERC Chairman Md Abdul Jalil, the CAB said consumer rights were not being protected. As a result, CAB is not nominating a representative in the committee formed by BERC to change the price of LPG.

Professor Shamsul Alam, Energy Advisor of CAB said, "We don't think the commission has the authority to fix the price of LPG every month. This will not protect the rights of consumers. According to the law, the price should be fixed on the basis of public opinion in ‘public hearing’. Instead, the commission wants to fix the price by the committee. Which is not correct according to the law of BERC."

The letter, signed by CAB General Secretary Advocate Humayun Kabir Bhuiyan, said that under Section 34 (5) of the BERC Act, the price of a fuel may be changed more than once a year if necessary. But it cannot be changed by 12 times in a year.

Earlier, BERC could increase electricity and fuel prices only once a year. However, there was an opportunity to increase the price of electricity once the normal price of fuel is increased. However, there has not been a situation like the unusual increase in fuel prices in the past. Recently, Section 34 (5) of the BERC Act has been amended in the Parliament to increase the price more than once.

CAB claims that there must be transparency and impartiality in the way it is determined to ensure the fair and reasonable price. According to the regulations, there should be a public hearing and the presence of stakeholders should be ensured through a public notice.

The BERC requested CAB to nominate a representative to the committee to make recommendations on the pricing of LPG and autogas at the consumer level on the basis of CP of Saudi Arabia. But the CAB did not nominate a representative due to the reason.

However, no one of the commission agreed to make any comment immediately about the mater.

On January 14, the Commission has taken up the initiative to fix the retail price of LPG through conducting public hearing, where licensees and other stakeholders took part.

Earlier, the Consumer Association of Bangladesh (CAB) had filed a writ petition seeking fixing of LPG prices through a public hearing. Following the hearing of the writ petition, the court had directed the BERC to hold a public hearing and fix the price of LPG.

The government is discouraging natural gas connections or supply in pipelines in the sector due to the gas crisis. LPG is recommended as an alternative to ensuring fuel safety.

Consumers say that retailers demand prices as per their wish due to a lack of strict regulation and also lack of proper display of price tag on the cylinders. The price goes up in different situations. Many cylinders contain less quantity of LPG than mentioned. There is also a risk of accidents as many cylinders are not manufactured as per the international specifications. 

In addition to residential purposes, various other uses of LPG have been started. Meanwhile, LPG has been introduced in the country for vehicles, which is mainly used as fuel for transportation. Autogas can be found at lower prices than petrol and compressed natural gas (CNG).