Traders stopped sale of LPG cylinders, energy division’s 5 measures
The energy division has taken five measures to resolve the ongoing shortage of liquefied petroleum gas (LPG).
These steps are expected to increase LPG imports, which in turn may ease the supply crunch in the market.
However, importers have stated that it may take some more time for the supply shortage to be resolved.
Meanwhile, an ongoing strike by LPG traders continues amid these government measures.
The traders on Wednesday announced that they would stop selling LPG cylinders from today, Thursday.
Sources in the energy division said that swift measures have been taken to increase LPG imports. Letters have been sent requesting the National Board of Revenue (NBR) to reduce duties and the Bangladesh Bank to simplify the process of opening LCs (letters of credit).
A letter is also being sent today, Thursday, to the Bangladesh Energy Regulatory Commission (BERC) requesting approval for increased imports by five companies.
The LPG traders’ cooperative association announced on Wednesday that the sale of LPG cylinders would be suspended from Thursday morning.
The association stated that the supply and sale of LPG cylinders would remain suspended nationwide until their demands are met.
The LPG traders’ cooperative association is responsible for selling LPG cylinders in the market.
Enquiries revealed that sales of LPG cylinders have been suspended since morning in Dhaka, Gazipur, Sylhet, Sunamganj, Moulvibazar and Habiganj. In other districts of the country, LPG sales are continuing.
A meeting between BERC and the LPG traders’ cooperative association is scheduled to take place on Thursday afternoon.
A new decision regarding the sale of LPG is expected to be announced following the meeting.
The LPG traders’ cooperative association stated that if their demands are not accepted at the meeting, traders will continue to suspend LPG sales. If the demands are accepted, they will resume sales.
Earlier, on Monday, Prothom Alo published a report titled “Businesses denied permission to increase LPG imports.” Following this, the energy division initiated measures to increase LPG imports.
Mohammad Amirul Haque, president of the LPG Operators Association of Bangladesh (LOAB), told Prothom Alo today, Thursday, “It is not possible to increase supply immediately. However, initiatives to increase imports have already been taken. LPG supply will increase soon.”
Five measures taken by the energy division
A letter has been sent to the Bangladesh Bank requesting the swift processing of loan applications and the opening of letters of credit.
Considering LPG as a green fuel, a letter has been sent to the National Board of Revenue requesting a reduction in value-added tax (VAT) at the production and import stages. It has been proposed that VAT at the import stage be reduced from 15 per cent to 10 per cent and that the 7.5 per cent VAT at the production stage be withdrawn.
In response to applications received from Omera, Meghna, Jamuna, United I Gas, and Delta for increasing import ceilings, the ministry has issued no-objection letters and requested BERC to take further action.
Through the cabinet division and the ministry of home affairs, district and upazila administrations have been requested to take action against any artificial shortages by conducting regular mobile court operations.
Ministry officials have been instructed, through office orders, to inspect storage facilities adjacent to Chattogram and Mongla ports and submit reports to determine the actual status of imported LPG. The purpose is to ascertain the real condition of the supply chain at the import, distributor, dealer and retail levels.