CONSUMPTION of Liquefied Petroleum Gas (LPG) in the country has been increasing at a faster pace since 2013 with growing allegations that firms are charging higher prices and supplying the cooking gas without maintaining quality and quantity. A ban on providing new gas connections to households by the government has existed since 2013. This combined with a price fall and a rise of consciousness among eligible people about the difficulty in providing arrangements of daily cooking are the major reasons for the booming market. Market monopoly of a few conglomerates and the government’s desire to build a LPG container port alongwith a growing number of accidents relating to LPG cylinder explosions are the reasons for the necessity of a comprehensive LPG policy for the country.
News media reports indicate that the country has 26 million households and commercial units that require cooking gas and of them, demand from only 3.7 million is met by supplying natural gas through pipelines. In this backdrop, the annual consumption of LPG is exceeded 400,000 tons in 2016, which was less than 100,000 tons until 2013. Until 2013, the country’s annual LPG consumption was 80,000-90,000 tons, of which state-run oil companies under the Bangladesh Petroleum Corporation supplied approximately 20,000 tons while the rest of the demand was met by the private companies. The Minister concerned has projected that the annual consumption would exceed 6,00,000 tons by the end of 2017.
Due to lax policy and monitoring, the suppliers set different price tags for the same quantity, which could be reduced by up to Tk 200 for each 12kg-cylinder if the market is regulated properly. At present, six to seven private companies are supplying LPG while another four to five will join the market in coming months, which is a positive sign for creating and maintaining a competitive market. To ensure a rational price level strong market monitoring is very much essential.
Besides, some local syndicates have an offer of LPG at cheaper rates by bottling the cooking gas in makeshift arrangements, which is not only harmful for the market but also a serious threat to public safety.
A regulatory mechanism is a must to ensure public safety and quality and quantity of the supplied LPG by promoting healthy competitiveness for all market players. We thank the Ministry concerned for apprehending the necessity of a policy for protecting consumers’ safety and public health as well as a standard quality and quantity measurement for the growing use of LPG cylinders.
News media reports indicate that the country has 26 million households and commercial units that require cooking gas and of them, demand from only 3.7 million is met by supplying natural gas through pipelines. In this backdrop, the annual consumption of LPG is exceeded 400,000 tons in 2016, which was less than 100,000 tons until 2013. Until 2013, the country’s annual LPG consumption was 80,000-90,000 tons, of which state-run oil companies under the Bangladesh Petroleum Corporation supplied approximately 20,000 tons while the rest of the demand was met by the private companies. The Minister concerned has projected that the annual consumption would exceed 6,00,000 tons by the end of 2017.
Due to lax policy and monitoring, the suppliers set different price tags for the same quantity, which could be reduced by up to Tk 200 for each 12kg-cylinder if the market is regulated properly. At present, six to seven private companies are supplying LPG while another four to five will join the market in coming months, which is a positive sign for creating and maintaining a competitive market. To ensure a rational price level strong market monitoring is very much essential.
Besides, some local syndicates have an offer of LPG at cheaper rates by bottling the cooking gas in makeshift arrangements, which is not only harmful for the market but also a serious threat to public safety.
A regulatory mechanism is a must to ensure public safety and quality and quantity of the supplied LPG by promoting healthy competitiveness for all market players. We thank the Ministry concerned for apprehending the necessity of a policy for protecting consumers’ safety and public health as well as a standard quality and quantity measurement for the growing use of LPG cylinders.
