State-owned LPG Limited has submitted a proposal to the Bangladesh Energy Regulatory Commission (BERC) to raise the price of its 12.5kg LPG cylinder from Tk690 to Tk850.
The proposal, confirmed by the Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed, was received a couple of days ago and is set to be discussed by the commission.
New prices could come into effect as early as February.
In response to inquiries about the procedural approach, the chairman stated that the matter has not yet been finalised.
The proposal will first be presented to the commission, which will determine the appropriate process for resolution, including the possibility of a public hearing.
Despite private sector LPG prices being significantly higher, the state-owned company’s LPG rates are substantially lower, benefiting from domestic gas field by-products.
However, allegations persist that this subsidised LPG rarely reaches consumers, with most of it being directed towards specific institutions or siphoned off into the black market.
In the 2022–23 fiscal year, LPG Limited supplied a mere 15,215 tonnes of LPG against the country’s annual demand of 15 lakh tonnes.
The company’s annual report also revealed that only 1,931 tonnes were sold directly in that year, a significant drop from 4,128 tonnes in the previous fiscal year.
LPG Limited operates bottling plants in North Patenga, Chattogram, and Kailashtila, Sylhet.
These plants process LPG obtained from Eastern Refinery Limited and Rupantarita Prakritik Gas Company Limited via pipelines.
Finished product is marketed by BPC-controlled distributors such as Padma, Meghna, Jamuna, and SAOCL.
The Patenga bottling plant was established by Jamuna Oil Company in 1977–78 and was later converted into LPG Limited, a public limited company, in 1988.
Similarly, the Kailashtila plant, commissioned in 1998, was integrated with LPG Limited in 2003.
Combined, these facilities have a storage capacity of 540 tonnes.
LPG Limited’s financial reports show a net profit of Tk4.41 crore and non-operational income of Tk5.92 crore in the 2022–23 fiscal year.
Critics argue that the proposal for a price hike is unjustified given these figures.
Former BERC Member Mokbul-E-Elahi Chowdhury noted that companies must operate within a profit limit, suggesting that a net profit exceeding Tk7 crore could cross this threshold.
He emphasised that LPG distribution should prioritise areas without gas networks, such as university dormitories, police and military barracks, and hospitals, to maximise utility and minimise black-market opportunities.
LPG Limited Managing Director Yusuf Hossain Bhuiyan defended the proposal, stating that it aligns with Bangladesh Petroleum Corporation’s (BPC) recommendations.
Acknowledging profitability, he attributed the request to declining sales in the 2023–24 fiscal year, which have reduced net profits.
The debate over the price hike underscores longstanding concerns regarding the state-owned company’s operational focus and transparency.
