LPG
LPG Price: Operators demand an increase but consumers want reduction
Consumers right groups stiffly opposed the operators’ demand for raising the price of liquefied petroleum gas (LPG) as the energy regulator held a public hearing on price re-fixing on Monday.
The rights groups urged Bangladesh Energy Regulatory Commission (BERC) to proceed on the issue cautiously to avert litigation in higher court, while the operators insisted on increasing the price further to cover losses in their business.
Both the sides placed their respective arguments during the public hearing held at BIAM Auditorium in the city. Convened by the BERC, it was presided over the commission chairman Abdul Jalil. Other members of the BERC were also attended the hearing.
The BERC has been re-fixing the LPG price on monthly basis since April 12 this year. But LPG Operators of Association of Bangladesh (LOAB) oppose the process saying that much of their costs were not calculated and considered in the price fixing that resulted loss in business.
LOAB and its members also appealed to the BERC to review the price fixing formula and accommodate all costs in re-fixing the LPG price. Responding to the appeal, the BERC convened the public hearing to discuss the issue in an open meeting.
Advisor of the Consumers Association of Bangladesh (CAB) Prof Shamsul Alam, while placing his arguments at the hearing, alleged that much of the LPG price related information, provided by the operators, lacks accuracy.
He said documents show the shipping charge per metric tons of LPG is $69 while the LPG operators are demanding $126 while such charge is about $20 in neighbouring India.
He said the LPG operators are demanding the price of 12-kg LPG at Tk 1381 while it is selling at Tk 1,100.
READ: Beximco LPG sings deal with Jamuna Oil to sell LPG at pumps
“If a retailer can sell 12-kg LPG at Tk 1100, how could they argue for a price at Tk 1,380?” he raided the question.
He also said public hearing on re-fixing the price of LPG should not be held as there is no scope to entertain the appeal of the LPG operators as the appeal was made beyond the BERC provision.
“Concerned provision says any appeal for review a decision should be made within 30 days while the appeal for review was made beyond 30 days”, he added.
Head of Marketing of the Bashundhara LPG Jakaria Jalal said there are so many anomalies in the price calculations as many cost were not considered by the BERC while fixing the price.
He said distributors’ cost is calculated at Tk 24 per 12-kg LPG while it is Tk 50 for public sector LPG which is a clear discrimination.
The LPG Auto Gas Station and Conversion Workshop Owners Association president Mohammad Sirajul Mawla demanded that Auto LPG gas price should be fixed once a year instead of monthly basis at the consumer level. In this case, he urged the BERC to fix the price at Tk 45 per litre.
Hasin Parvez, general secretary of the organization, demanded a commission of Tk 8 per litre for the owners of Autogas stations and said the government should encourage this environmentally friendly fuel in every possible way.
Eminent economist Prof MM Akash said if the LPG operators do not abide by the BERC rules, the government should go for open market and select the international firms through a competitive bidding process to run the local LPG business.
President of Bangladesh Mobile Phone Customers Association Mohiuddin Ahmed said the LPG operators threatened to shut down their business which in no way should be allowable by the BERC.
Communist Party of Bangladesh (CPB) leader Ruhin Hossain Prince and Ganasamhati Andolon Chief Coordinator Zonayed Saki also addressed the public hearing.
READ: LPG prices to go up again from Sept 1
In the concluding remarks BERC chairman Abdul Jalil requested all stakeholders and participants to submit their additional information and documents by September 19.
As per provision, BERC takes 90 days to make its decision on any issue after holding a public hearing.
Beximco LPG sings deal with Jamuna Oil to sell LPG at pumps
Beximco LPG Unit – 1 Ltd has signed a deal with Jamuna Oil Company Ltd, a subsidiary of Bangladesh Petroleum Corporation, to sell its auto-gas by setting up pumps at the registered filling stations of the state-owned company.
The signing ceremony took place at the Chottogram office of Jamuna Oil Company on Wednesday.
According to the agreement, it will ensure rapid penetration of liquefied petroleum gas (LPG) for use in automobiles across the country.
Also read: Public hearing on LPG pricing postponed
LPG is also known as auto-gas while is used in the motor vehicles.
As per the deal, Jamuna Oil and Bangladesh Petroleum Corporation will each receive a royalty of Tk 0.50 per liter of LPG that is sold by Beximco LPG through their established Auto LPG pumps.
Currently, Jamuna Oil has a network of 750 filling stations while Beximco LPG was granted 500 franchise licenses for Auto LPG stations and 25 licenses for Conversion Workshops by the Ministry of Energy & Mineral Resources earlier in 2016, said a press release of the Beximco.
Also read: LPG to cost more from Aug 1 as regulator refixes retail price
The agreement was signed by Gias Uddin Ansary, managing director of Jamuna Oil and Mrinal Roy, chief executive officer of Beximco LPG.
Speaking at the ceremony, Mehedi Hasan, GM, Sales & Marketing of Beximco LPG, said, “This agreement with Jamuna Oil Company will stand as a milestone for the rapid progress and development of the automotive fuel sector of the country.
He said Beximco LPG commits delivery of the best quality LPG mix of Propane and Butane to ensure that the fuel reaches the required Octane number and causes no damage to the engine of the vehicle.
Public hearing on LPG now on Aug 17-18
Bangladesh Energy Regulatory Commission (BERC) has set new dates for the public hearing on fixing the price of liquified petroleum gas (LPG).
As per a new schedule, the hearing will be held from 10 am to 5 pm on August 17-18 at AKM Shamsul Haque Khan Auditorial of Bangladesh Institute of Public Administration (BIAM) in the city.
The regulator will try to complete the hearing on August 17. If not possible, it will continue on August 18, said a BERC notice.
Interested individuals or organisations have been asked by the BERC to send their proposals by August 16 to place it in the hearing.
Also read: Public hearing on LPG pricing postponed
The BERC earlier had suspended its public hearing on the issue scheduled for July 7-8 following the government’s directives against the backdrop of the countrywide strict lockdown that began on July 1.
The energy regulator has announced the scheduled public hearing responding to the appeal of the LPG operators who oppose the present pricing formula for LPG.
The BERC, held its last public hearing on LPG price fixing in January this year, and first fixed the price on April 12 in compliance with a court order.
The LPG operators in the private sector allege that many of their cost components were not considered by the energy regulator while announcing the price.
As a result, their businesses have seen a huge financial loss, said Azam Chowdhury, president of LPG Operators Association of Bangladesh (LOAB), a representative body of the operators.
The operators, which include LPG cylinder manufacturers, bottling plant owners, importers, and traders, demanded addition of Tk 224 for a 12-kg LPG cylinder as costs of the operators while fixing the new retail price of LPG by the BERC.
The LPG businesses, having a size worth around Tk 300 billion, are at stake as a consequence, they said.
As part of the regular, the BERC fixes the LPG price at the beginning of a month.
For the month of August, the price of 12-kg LPG of private companies was fixed at Tk 993, up by Tk 102 from the current price of Tk 891 in July.
Also read: LPG to cost more from Aug 1 as regulator refixes retail price
The price was Tk 842 per for June trading, Tk 906 for May trading and Tk 975 for April trading, as fixed by the BERC.
However, most of the consumers in Dhaka were buying a 12kg LPG cylinder at a price ranging between Tk 1,000 and Tk 1,100 over the past three months, traders said.
Model fuel outlets to change Bangladesh's highway landscape?
Be it the development of high-speed carriageways or wayside amenities, investment in highway infrastructure is always considered crucial to the economic development of any nation.
While highways strengthen the road network across a country by facilitating the smooth and fast movement of goods and people from one part to another, wayside amenities like rest areas for drivers and commuters help promote road safety by curbing accidents due to incessant driving.
On the lines of developed countries like the US and Australia, Bangladesh is also all set to market its highways as a global brand -- by setting up what it claims model refuelling stations with spiffier rest areas to welcome motorists looking for a break from the road.
Also read: Summit signs MoU with Commonwealth LNG to help supply fuel to Bangladesh
According to State Minister for Power, Energy and Mineral Resources Nasrul Hamid, the initiative comes at a time when the government is developing a number of high-speed corridors across Bangladesh, including the Dhaka-Khulna highway.
Public hearing on LPG pricing postponed
Bangladesh Energy Regulatory Commission (BERC) has postponed its proposed public hearing on liquified petroleum gas (LPG) price fixing scheduled for July 7-8.
According to a BERC public notice, the hearing was suspended in compliance with the government’s directives against the backdrop of the countrywide strict lockdown that began on July 1.
The commission will announce a fresh date for the public hearing later, a BERC notice said.
The energy regulator had announced the scheduled public hearing responding to the appeal of the LPG operators, who oppose the present pricing formula for LPG.
Also read: Private operators demand fixing LPG price on “practical assessment” basis
The BERC held its last public hearing on LPG price fixing in January this year, and first fixed the price on April 12 after that, complying with a court order.
The LPG operators in private sector have been alleging that many of their cost components were not considered by the energy regulator while announcing the price.
As a result, their businesses have seen a huge financial loss, said Azam Chowdhury, president of LPG Operators Association of Bangladesh (LOAB), a representative body of the operators.
The operators, which include LPG cylinder manufacturers, bottling plant owners, importers, and traders, demanded addition of Tk 224 for a 12-kg LPG cylinder as costs of the operators while fixing the new retail price of LPG by the BERC.
Also read: Private companies’ 12 kg LPG price reduced to Tk 842 from June 1
The LPG businesses, having a size worth around Tk 300 billion, are at stake as the consequence, they said.
A 12kg LPG, being provided by private operators, is Tk 891 for July trading, as per the BERC’s latest order. The price was Tk 842 per for June trading, Tk 906 for May trading and Tk 975 for April trading, as fixed by the BERC.
However, most of the consumers in Dhaka were buying a 12kg LPG cylinder at a price ranging between Tk 1,000 and Tk 1,100 over the past three months, traders said.
Private companies’ 12 kg LPG price reduced to Tk 842 from June 1
The Bangladesh Energy Regulatory Commission (BERC) has re-fixed the price of Liquefied Petroleum Gas (LPG) of private companies at retail level with effect from June 1.
As per the new prices, the private companies will have to sell 12 kg LPG at Tk 842 instead of current price of Tk 906.
Read: LPG Growth in Bangladesh: Effective Alternative to Natural Gas
The regulatory body re-fixed the price adjusting with Saudi Contract Price (CP).
The price of LP Gas Company Ltd, the state-owned company, will remain same at Tk 591 for 12.5 kg LPG as it has no relation with Saudi CP.
In re-fixing the price, the value of per kg of LPG was considered to be Tk 70.17 including VAT and such price will be applicable for re-fixing the price of other weighed containers.
The other quantity’s LPG will be selling at lowered price to be fixed rationally.
The Auto gas price was also re-fixed at Tk 41.47 per litre against the current price of Tk Tk 44.70 under the price adjustment procedure.
Read:Private companies’ 12kg LPG price re-fixed at Tk 906
“This price will be applicable for the month of June until further adjustment in the Saudi CP,” said BERC Md Abdul Jalil while announcing the new price through a virtual briefing on Monday.
"The private companies' LPG price was re-fixed on the basis of Saudi CP," he told reporters.
Normally Saudi biggest oil company Armaco announces its CP for bulk LPG at the concluding state of every month for next month’s transactions.
Most of Bangladeshi private companies import their bulk LPG from the Middle-East on the basis of Saudi CP and market it in the country.
The BERC for the first time fixed the retail level LPG price on April 12 after holding a public hearing to comply with a High Court order.
About 20 private companies have been operating in the market with more than 95 per cent 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.
Read: LPG operators to get services under one roof soon
The BERC chairman admitted that though they fixed the price, still product of some companies are selling at higher price in Dhaka city and some other places.
"We have sent letters to the Commerce Ministry and the Energy Division seeking their cooperation to enforce and monitor the new price", he said adding this is a responsibility of other administrative offices along with BERC.
LPG Growth in Bangladesh: Effective Alternative to Natural Gas
Bangladesh has been traditionally dependent on the supply of pipeline-based gas in households. However, the piped gas saw an acute shortage concerning its demand. The situation got so out of hand that Titas, one of the largest piped gas distributors of the country stopped new piped connections entirely for several years. Though piped gas is still in vogue in many households and industries, analysts however see the future in LPG or Liquefied Petroleum Gas. It has become evident that Bangladesh will never be able to meet the demand with piped gas alone; rather the LPG market can be an effective as well as a cost-reducing solution in this regard.
State of Domestic Gas Supply
Bangladesh ranks as the 32nd highest consumer of natural gas in the world with over 6531 cubic feet of per capita gas consumption per year. With the ever-growing demand for gas, the natural gas supply that is currently in effect is not enough to ensure proper gas supply to every household as well as industries.
Bangladesh has provision for gas export by the foreign companies drilling in the offshore locations for gas but that sparked the debate of whether exporting gas is a feasible option considering Bangladesh has to import over 100,000 metric tons of LPG per year to meet the domestic demand.
The complete stoppage of new piped gas connection to households in 2010 has kickstarted the demand for LPG gas. Not only is it more convenient, but it's also more secure and the supply is stable as well. The limit of the piped gas is within the metropolitan and municipal areas only with the regular gas shortage. Compared to that, LPG has a much more stable supply with an affordable price structure.
Read Private companies’ 12kg LPG price re-fixed at Tk 906
Growth in LPG Demand
It was expected that the LPG sector will get a huge boost with the stoppage of private connections of piped gas. In 2009, the total usage of LPG gas stood at around 47,000 tons whereas as of 2018, the usage stands at around 10 lakh tons with a projected annual growth of 14%. Much of it is since there are 4 core households in Bangladesh but only about 34 lakh piped gas connections.
What's more interesting is that in the last two years leading to 2018, LPG growth has seen a usage boost of over 400%. The growth of the LPG sector can be attributed to two key factors – price and availability. A 12.5 kg cylinder is available at 900 to 1100 taka. The price fluctuates with the fluctuation in the international market.
Read LPG operators to get services under one roof soon
LPG Market Overview
The case of the LPG market is a peculiar one. Even though the sector is growing by leaps and bounds, this is still largely an import-based sector. The current demand for LPG in Bangladesh stands at around 1 million tons of which there is a supply of about 825,000 tons. Almost 95% of the supplies are imported making the sector completely dependent on the foreign market.
This has led to frequent price hikes as well as market instability at times. in 2017, the government was forced to not allow imports of LPG because of higher spot prices in the international market.
Though largely an import-based sector, Bangladeshi companies like Bashundhara and Kleanheat Gas have their own production facilities which are the only local producers of LPG. Right after Bashundhara, Omera LPG and Laugfs have the highest market cap. Their plant is solely based on import and regasification of the LPG. Even after this increased dependency on export, the companies can maintain an affordable price for the LPG because the government has an allocation for subsidies in the budget every year.
Even though almost the entire sector is import-based, there is still a shortage of supply in the LPG sector. There are not enough plants to process the imported LPG as well as a lack of local initiative. However, the government is also incentivizing market entry in the sector with 53 new licenses and 5 confirmed companies working on their own plant. In the long run, Bangladesh has to reduce the sole dependency on imports.
Read Omera LPG introduces home delivery services in lockdown
Prospects of the LPG Sector
LPG is considered the clean and affordable alternative to natural piped gas. With more and more households and industries coming up, it is almost certain that the growth trajectory of LPG demand will continue to be upward. Besides households, the demand for LPG in the automobile sector is also increasing.
With more and more opportunities opening up for investment as well as demand, the key focus of new entrants into the market should be to tap into the growing demand in the rural areas as well as new industries which are showing fresh demand as well the ones moving away from traditional piped gas to LPG.
Sustaining industry growth is also something the companies should maintain their focus on. With the rising demand for LPG, many established businesses are planning to venture into the LPG sector and the government is also incentivizing market entry. However, this has created an increased saturation of competition in the market.
The production cost of a 12.5kg cylinder stands at about 2600 to 2800 BDT. However, the companies have to sell the LPG to wholesalers for 700 to 750 BDT who then sells it to the retailers for 900 to 1100 BDT. The government is providing subsidies to bridge this gap but that alone isn’t enough.
Experts opine that the situation can develop if more and more local companies take initiative on the production end rather than the processing end. There has also been a call for reduced dependency on the imports alone which grossly contributes to the increased production cost as well.
Read Gas supply to remain suspended in Narayanganj, Munshiganj
Bottom Line
As Bangladesh faces an acute shortage of natural gas, LPG looks like an effective ad long-term solution. With the growing demand in the household as well as industries, the opportunities for local stakeholders remain largely untapped. As more and more companies show interest in the sector, LPG or Liquefied Petroleum Gas is becoming a significant alternative and in many cases, the first choice instead of natural gas.
Private companies’ 12kg LPG price re-fixed at Tk 906
Further adjusting with Saudi Contract Price (CP), the Bangladesh Energy Regulatory Commission (BERC) has re-fixed the price of Liquefied Petroleum Gas (LPG) at retail level with effect from May 1.
As per the new prices, the private companies will have to sell 12 kg LPG at Tk 906 instead of current price of Tk 975 while LP Gas Company Ltd, the state-owned company, will sell 12.5 kg LPG at Tk 591 as it has no relation with Saudi CP.
In re-fixing the price, the value of per kg of LPG was considered to be Tk 75.49 including VAT and such price will be applicable for re-fixing the price of other weighed containers.
Also read: Govt to monitor adherence to new LPG price after lockdown: Energy Secretary
The Auto gas price was also re-fixed at Tk 44.70 per litre against the current price of Tk 47 under the price adjustment procedure.
“This price will be applicable for the month of May until further adjustment in the Saudi CP,” said BERC Md Abdul Jalil, while announcing the new price through virtual briefing on Thursday.
"The private companies' LPG price was re-fixed on the basis of Saudi CP," he told reporters.
Normally Saudi biggest oil company Armaco announces its CP for bulk LPG at the concluding state of every month for next month’s transactions.
Read LPG operators to get services under one roof soon
Most of Bangladeshi private companies import their bulk LPG from the Middle-East on the basis of Saudi CP and market it in the country.
The BERC for the first time fixed the retail level LPG price on April 12 after holding a public hearing to comply with a High Court order.
About 20 private companies have been operating in the market with more than 95 per cent 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.
Also read: Pvt companies’ 12 kg LPG price fixed at Tk 975, govt’s 12.5 kg at Tk 591
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.