LPG cylinder sales suspended from Thursday, traders’ association announces

The LPG traders’ cooperative association has announced nationwide suspension of the sale of liquefied petroleum gas (LPG) cylinders from today, Thursday.

Making the announcement, the association said it would continue to halt the supply and sale of LPG cylinders across the country until its demands are met.

The association issued a notice to distributors and retailers nationwide on Wednesday evening, stating that the lifting of LPG from the plants of all companies would also remain suspended.

Earlier in the day, the association placed its demands at a press conference held in front of the National Press Club.

The traders warned the authorities that LPG cylinder sales would be stopped if the demands were not met within 24 hours. Later in the evening, it formally issued the notice announcing the suspension.

At the morning press conference, the association said that the Bangladesh Energy Regulatory Commission (BERC) must readjust LPG cylinder prices, and that harassment and fines imposed on distributors through administrative actions must be stopped.

It warned that if these demands were not fulfilled within 24 hours, the supply and sale of LPG cylinders across the country would be suspended indefinitely.

The association further said that the country is currently going through an acute LPG crisis. Of the 55 million cylinders marketed by 27 companies, only 12.5 million are being refilled with gas. This means that the remaining 42.5 million cylinders are lying empty.

Speaking to Prothom Alo around 11:00 pm on Wednesday, LPG traders’ association president Selim Khan said that the sale of LPG cylinders would remain suspended from Thursday morning.

Stating that a meeting with the BERC is scheduled for 3:00 pm today, he further said, “If our demands are accepted at the meeting, sales will resume. Otherwise, the suspension will continue.”

It may be noted that BERC adjusts LPG prices on a monthly basis. The commission most recently announced new prices on 4 January.

In a written statement issued by the LPG traders’ cooperative association earlier in the day, it said that BERC had adjusted prices without any consultation with distributors.

The statement further said instead of focusing on resolving the LPG shortage, the authorities were creating controversy over higher prices. Consumer rights enforcement drives were creating panic, forcing many to shut down their businesses.

The statement added that the appropriate solution would have been for the Energy Division, BERC and LPG companies to jointly address import-related problems. Instead, distributors are being harassed through enforcement drives.

The association has demanded that distributor commission be increased from Tk 50 to Tk 80, and retailer commission from Tk 45 to Tk 75.