Bangladesh Energy Regulatory Commission
LPG operators to get services under one roof soon
Bangladesh’s liquefied petroleum gas (LPG) operators are likely to get one-stop service (OSS) in receiving different licenses from various agencies which will ultimately play a vital role in reducing their operational costs.
According to official sources, the Energy and Mineral Resources Division will initiate a move for introducing such OSS as part of ease of doing business ethics to promote and smoothen the growing business in the LPG sector.
"We will introduce the OSS like the one in the Bangladesh Investment Development Authority (BIDA) system to bring all the services under one umbrella,” said Anisur Rahman, senior secretary of the Energy and Mineral Resources Division.
Also read: Introduce tracking system for LPG, CNG cylinders: Nasrul Hamid
He said this OSS will be introduced within six months. “If necessary, we’ll place the issue at the top level of the government.”
At present, the LPG operators have to take permission from various administrative and licensing bodies, including Bangladesh Energy Regulatory Commission (BERC).
In some cases, the operators have to move up to 21 offices from a district-level administration to ministry-level office, said Jakaria Jalal, head of marketing of Bashundhara LPG, a leading operator.
Read Private companies’ 12kg LPG price re-fixed at Tk 906
Industry insiders and consumers right groups said multiple regulators in the energy sector have made the services costlier for both the operators and the consumers, casting a big impact on the tariff, especially in the LPG and CNG businesses.
“Consumers have to bear the brunt of huge amounts paid in fees annually by the business operators,” said an energy expert.
President of LPG Operators of Bangladesh (LOAB) Azam J Chowdhury at a recent seminar said any bulk liquefied petroleum gas (LPG) business operator has to pay annually about Tk 13.5 million (1.35 crore) in total to 13 regulatory bodies to obtain licenses or to renew them for business.
Also read: LPG distribution launched by UN partners in Cox’s Bazar
The licensing bodies and the amount of their fees are Bangladesh Energy Regulatory Commission (BERC) Tk 35,65,000, Bangladesh Petroleum Corporation (BPC) (proposed) Tk 25,00,000, Bangladesh Investment Development Authority (BIDA) Tk 40,000, Department of Environment (DoE) Tk 205,000, Bangladesh Standards and Testing Institution (BSTI) Tk 12,04,158, Department of Explosives Tk 116,000, Bangladesh Fire Service and Civil Defense (BFSCD) Tk 120,000, Bangladesh Inland Water Transport Authority (BIWTA) Tk 25,00,000, and city corporation/local government body Tk 93,760.
The other bodies and their fees include Department of Inspection of Factories and Establishment (DIFE) Tk 320,000, Office of the Chief Controller of Imports and Exports (CCI and E) Tk 61,000, Dhaka Chamber of Commerce and Industry (DCCI) Tk 10,350 and Registrar of Joint Stock Companies and Firms (RJSC and F) Tk 27,60,000 (assuming an authorised capital Tk 3 billion or 300 crore).
During a public hearing recently held by the BERC, officials of large six private LPG companies also raised the issues and demanded a single regulatory authority to monitor their business and introduction of a one-stop service at the prime regulator's office.
Read LPG operators to get services under one roof soon
Hasin Pervez, a leader of the Bangladesh CNG Filling Stations and Conversion Workshop Owners Association, brought a similar allegation saying that they have to pay fees to 22 bodies to take licenses for LPG and CNG business.
"The most bothersome part, in this case, is that there’s no serial to maintain in seeking licenses or permission from among the bodies like deputy commissioner (DC) office, BPC, or any other authority," he said.
Once anybody applies to the DC office, its officials ask the applicant to take licenses from other agencies first and then apply, he added.
Read Omera LPG introduces home delivery services in lockdown
Hasin Pervez noted that when applications are filed to other authorities, they direct to bring the DC Office's permission first and then apply to them.
Echoing the allegation, Prof Shamsul Alam, an adviser to the Consumers Association of Bangladesh (CAB), said the consumer rights body will also prefer a single regulator in the energy sector.
"We're of the same opinion that multiple regulatory bodies only create complications in business and enhance costs which cast an impact on the energy tariff, and finally consumers have to pay the price," he said.
Read LPG terminal project at Matarbari to get consultant
Backing their views, former member of the BERC Mizanur Rahman said there should be a single and prime regulatory authority with one stop service facilities that will coordinate with other government agencies.
He said the BERC has already simplified some of the processes in applying for a license for energy business by reducing the number of required obligatory documents.
"But still there’s a scope for doing much more to further ease doing business in the energy sector," he told UNB.
Read BPC’s ballooning operations call for augmented manpower
He also suggested fixing the fees rationally so that it does not affect the consumers.
BERC Member (Gas) Maqbul-E-Elahi Chowdhury said they have already prepared a draft to reduce the annual license fees for different businesses in the energy sector.
Govt to monitor adherence to new LPG price after lockdown: Energy Secretary
Energy and Mineral Resources Division’s senior secretary Anisur Rahman has said that the government will monitor the implementation of the new price of Liquified Petroleum Gas (LPG) fixed by the Bangladesh Energy Regulatory Commission (BERC).
“We will monitor whether the LPG is being sold at the new price fixed by the BERC,” he said while addressing a webinar on “BERC’s LPG Pricing and Its Sustainability” organised by Energy and Power magazine on Saturday.
The energy secretary’s remarks came against the backdrop of BERC’s announcement to fix the price of LPG with effect from April 12.
As per the new prices, the private companies will have to sell a 12 kg LPG at Tk 975 while LP Gas Company Ltd, the state-owned company, will sell its 12.5 kg LPG at Tk 591 at the retail level.
Also read: Pvt companies’ 12 kg LPG price fixed at Tk 975, govt’s 12.5 kg at Tk 591
But many consumers apprehend that they will not get the LPG at the prices fixed by the regulator as there is no strict monitoring by the government about its enforcement.
The energy secretary said that due to lockdown situation, it is not possible for them to strictly monitor whether the LPG is being sold at the BERC-fixed price or not.
“But after lockdown, we will be going for strict monitoring and it will be the duty of the all the concerned agencies of the government to implement the new LPG price”.
Before the price fixing by BERC, the private companies had been selling 12 kg LPG in the retail markets at Tk 1100 -Tk 1200 while those of the state-owned company over Tk 700.
Also read: ‘Stop meddling in LPG price fixing process’
About 20 private companies have been operating in the market with more than 95 percent market share by annually importing 1.2 million metric tons of bulk LPG from mainly Middle-East while the state-owned LP Gas Company is locally producing 25,000 MTs of LPG from locally produced condensates at different gas fields.
The webinar was also addressed by energy experts Dr M Tamim, Dr Ijaz Ahmed, BERC member Syed Mokbul-e-Elahi, and Bashirul Haque.
Bashundhara LPG’s Head of Marketing Zaharia Jalal made a presentation on the issue.
He said that many costs of LPG business were not considered by the BERC while fixing this price.
Also read: BERC moves to set LPG price at retail level
“As a result, the LPG operators will face trouble to make the price sustainable,” he said.
Dr M Tamim said that the BERC should have declared a pricing formula instead of fixing a price in the market.
“If a formula was declared, it would have been more effective to regulate the price,” he added.
Pvt companies’ 12 kg LPG price fixed at Tk 975, govt’s 12.5 kg at Tk 591
The Bangladesh Energy Regulatory Commission (BERC) has fixed the price of Liquified Petroleum Gas (LPG) with effect from today (Monday, April 12, 2021).
As per the new prices, the private companies will have to sell a 12 kg LPG at Tk 975 while LP Gas Company Ltd, the state-owned company, will sell its 12.5 kg LPG at Tk 591 at the retail level.
Read ‘Stop meddling in LPG price fixing process’
BERC Chairman Md Abdul Jalil announced the new prices at a virtual press briefing on Monday.
“The private companies’ LPG price was fixed on the basis of Saudi CP,” he told reporters.
At present, the private companies have been selling 12 kg LPG in the retail markets at Tk 1100 -Tk 1200 while those of the state-owned company over Tk 700.
Also read: BERC to start public hearing Thursday to re-fix LPG price at consumer level
About 20 private companies have been operating in the market with more than 95 percent market share by annually importing 1.2 million metric tons of bulk LPG from mainly Middle-East while the state-owned LP Gas Company is locally producing 25,000 MTs of LPG from locally produced condensates at different gas fields.
Abdul Jalim said it will be very tough for them to ensure the enforcement of the new LPG prices as they don’t have any mechanism or offices at the district of upazila level.
“We’ll need to formulate some new rules and regulattions to ensure the effectiveness of the new prices of LPG”, he said adding that the administrative bodies will have to enforce the price by their own administrative measures.
Also read: BERC seeks opinions for public hearing on LPG price on January 14-18
“BERC is regulator, not an enforcerent agency”, he defended his position saying that this is first time the regulator announced the LPG prices.
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