Sylhet, Oct 11 (V7N) – A shortage of liquefied petroleum gas (LPG) cylinders has emerged in Sylhet following a price hike, forcing consumers to pay significantly more than the government-fixed rate.
A 12-kg LPG cylinder is currently selling for Tk 2,200 to Tk 2,500 in Sylhet, compared with the Bangladesh Energy Regulatory Commission’s (BERC) fixed retail price of Tk 1,837. As a result, consumers are paying Tk 363 to Tk 663 more per cylinder than the prescribed rate.
Despite the higher prices, supply shortages persist, adding to the hardship of households that depend on LPG for cooking.
In Sylhet city, some retailers are selling cylinders for around Tk 2,000, while prices in rural areas have reportedly reached Tk 2,500 or more. The situation has increased household expenses, particularly for families that rely on LPG as their main cooking fuel.
Consumers are struggling both to find cylinders when needed and to purchase them at the officially fixed price. Although BERC has revised the price, the benefits of the adjustment have yet to reach many households because market prices remain substantially higher.
LPG distributors said the cost of transporting cylinders from companies to Sylhet, along with loading and unloading charges, warehouse rent, workers’ wages and other operating expenses, makes it difficult for them to sell at the government-fixed rate.
A retailer in the Subidbazar area of Sylhet city said selling cylinders at the prescribed price left little or no profit, particularly when home delivery costs were included. The retailer said an additional Tk 150 to Tk 200 was being charged to cover these expenses.
Price rises by Tk 252 in a month
On October 4, BERC announced a new LPG price for October, setting the maximum retail price of a 12-kg cylinder at Tk 1,837. The price had been Tk 1,585 in September, marking an increase of Tk 252 in one month.
However, the latest price adjustment has not brought market prices in Sylhet in line with the official rate. At current prices of Tk 2,200 to Tk 2,500, consumers are paying approximately 19.8 to 36.1 per cent above the prescribed maximum retail price.
Distributors seek higher commissions
The LPG Traders Welfare Association has called for an adjustment to distributors’ commissions to reflect rising transportation and operating costs.
According to the association, distributors were allocated a commission of Tk 50 per cylinder in 2021. It says the amount is no longer sufficient to cover expenses that have increased over the past five years.
The association estimates that transporting a cylinder from a company to a distributor’s warehouse costs Tk 50. Loading and unloading, along with delivery to retailers, costs another Tk 35, while workers’ wages, warehouse rent, electricity bills, licence fees and other expenses account for Tk 25.
These costs total Tk 110 per cylinder. Adding a claimed profit of Tk 40, the association says distributors need Tk 150 per cylinder, leaving a shortfall of Tk 100 under the existing Tk 50 commission.
On October 6, the association sent a letter to BERC requesting an adjustment to distributors’ costs and commissions, along with measures to stabilise the market.
The association also said differences in price lists issued by various LPG companies were contributing to inconsistent retail prices for the same product, creating difficulties for distributors and retailers while increasing costs for consumers.
The situation in Sylhet highlights the challenge of balancing distributors’ rising operating expenses with consumers’ need for affordable cooking fuel. Without effective measures to improve supply, address commission-related concerns and ensure compliance with official prices, households may continue to bear the burden of high LPG costs.
END/AKR/SMA/
