Desk Report:
We will increase the surveillance through local administration from tomorrow so that no one is a victim of disruption at the consumer level or anyone can abuse the market, Commerce Minister Khandaker Abdul Muktadir said. At the same time, he also said that the price of LPG will return to its previous level.
He told reporters after a meeting with representatives of LPG importers and suppliers on the current market price and supply situation of liquid petroleum gas (LPG) at the conference room of the Ministry of Commerce at the Secretariat on Thursday (February 26) evening.
The Commerce Minister said that several news related to LPG have come in the last few days. Apparently, there are some gaps in LPG. It has been reported in the media that there are some gaps in LPG. There have been reports that the price of a 12 kg cylinder at the retail level is being sold at a higher price than the government-set price of 1356 taka at various places. In the coming days, the supply situation of LPG remains satisfactory and no unbearable situation arises at the consumer level at the retail level. In order to keep the market stable, we sat down with LPG importers and various government agencies that we facilitate, regulate, including the Central Bank. We had a meaningful discussion here.
He said that those involved in this sector have raised many real problems. We have taken note of them and we will try to solve them as much as possible in the coming days so that they can continue their business activities without any problems.
In response to the question whether the price of LPG gas cylinders will remain at the previous level or will it be sold at that price, he said, those who are here with me are importers or those who have bottling plants and importers. But at the retail level, many times those who sell retail try to take advantage of the situation. The importer has nothing to do with this. From the next day, we will increase surveillance through the local administration so that the consumer level does not have to suffer such inconvenience or no one can abuse the market.
In that case, will the price go back to its previous place or not? In response to the question, he said, it will go back to its previous place. One thing is that at the import level, how many arguments have the importers raised regarding the price. Which is that they have said about the price review to keep their business running. This is based on data. This is not just a word of mouth. If their words are supportable and considerable based on data, then it must be considered. No one will do business at a loss anymore.
When asked whether the price of LPG is increasing, he said, no, there is no such decision at the moment.
33 companies have been licensed for LPG. In response to the question of whether you are taking any kind of cooperation or initiative in importing the remaining companies, where 10 companies in the country import about 70 percent, the Commerce Minister said, one thing is that many operators have become inactive after August 5. This is a factor of the market vacuum. Not all of it. Second, our importers buy almost from the spot market. They do not go to futures contracts. That is why market volatility often activates and deactivates them immediately. And third, many have big businesses in many areas. The bank’s single exposure limit is an obstacle for many of them. All these issues have come before us. We will work on these in the coming days.
And in response to the question of there being a problem with BPC storage, the Minister said, yes. Our other private sector importers have also extended their hand of cooperation. They have said that if BBC wants to import itself at this moment, they will let them use their storage facilities. We appreciate this.
Secretary of the Ministry of Commerce Mahbubur Rahman was present at the time.
