LPG bottlers are asking Bangladesh’s energy regulator to raise costs and commissions in official prices, saying current rates no longer cover importing, storing and distributing fuel.
They seek higher returns, citing borrowing, transport, safety and cylinder maintenance-related costs overall.
The Bangladesh Energy Regulatory Commission (BERC) will hold a public hearing on Oct 29. Written opinions can be submitted by Oct 27.
The proposals vary widely. Omera LPG wants storage and bottling costs set at Tk 12.25 per kilogram, compared with Tk 25 sought by Fresh LPG, Tk 30 by Delta LPG and Tk 19.5 by Petromax LPG.
On Oct 4, the BERC raised the official price of a 12kg cylinder by Tk 252 to Tk 1,837, from Tk 1,585 in September.
Yet consumers still cannot find LPG at the regulated rate, with cylinders selling for at least Tk 2,300.
Omera has proposed raising the price to Tk 2,137 per 12kg cylinder, about Tk 300 above the current rate.
It wants storage and bottling costs raised from Tk 11 to Tk 12.25 per kg, profit and company tax increased by about Tk 140 per cylinder, and financing costs raised by Tk 87.
Retailer commission would rise from Tk 45 to Tk 80, while distributor commission would remain Tk 50.
Fresh LPG, owned by Meghna Group, wants storage and bottling costs raised from Tk 16.74 to Tk 25 per kg.
It seeks distributor commission of Tk 10 per kg, up from Tk 4.17, and retailer commission of Tk 12.50, up from Tk 3.75.
It cites 15 percent annual borrowing costs and proposes a 20 percent return on investment.
Delta LPG wants storage and bottling costs raised from Tk 15.95 to Tk 30 per kg, with distributor commission of Tk 8.33 and retailer commission of Tk 10.
Petromax seeks storage and bottling costs of Tk 19.5 per kg, financing costs of Tk 8.12 and turnover tax of Tk 1.5 per kg, alongside higher commissions and autogas storage costs.
State-owned LP Gas has sought Tk 1,205.42 for a 12.5kg cylinder, compared with the BERC’s October rate of Tk 776.93.
Despite operators’ claims of rising import costs, BERC raised its shipping and trader-premium allowance from $160 a tonne in September to $250 in October.
Saudi Aramco’s average contract price rose from $647.75 to $712.5 a tonne. Omera’s proposal retains both October figures.
Distributors are seeking higher commissions, too.
Four businesses want the fee per 12kg cylinder raised from Tk 50 to Tk 150 for distributors and from Tk 45 to Tk 70 for retailers, citing higher transport and fuel costs.
LPG Operators Association of Bangladesh President Mohammad Amirul Haque said companies had submitted calculations for government assessment.
He blamed the instability in West Asia for rising costs and said the market was unlikely to improve until the situation normalised.
Asked why consumers could not buy cylinders at official prices, he said: “Why they can’t get it, I can’t say. We will bring it in.”
He said monitoring overpriced sales was not his responsibility; oversight rested with government authorities.