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LP gas price spirals [ Metro/News ] 2012-01-09
LP gas price spirals
 The price of liquefied petroleum (LP) gas has gone up in the retail markets of Khulna city in the last one week. The people now have to count extra money to buy LP gas as it is now selling at Tk 50 to Tk 70 higher per cylinder in the local markets.
They are also facing severe crisis of  LP gas cylinder for shortage of gas supply  at the government level.
Cashing in on the crisis, the traders here have increased the price of gas ignoring the government-fixed price, the city dwellers alleged.
Some retailers claimed that many dishonest dealers had stored LP gas cylinders in their godowns and were selling those at the higher price to make extra profit.
Consequently, the city dwellers have no choice but to buy the gas from the black market at almost double the price fixed by the government.
The state owned LP gas producing companies— Padma, Meghna and Jamuna— fixed the price of their 12.5 kilogram gas cylinder at Tk 682 at the factory gate.
However, their cylinders are being sold in the local market at about Tk 1,320 against  Tk 1,250 last week.
In a recent visit to the local market, private sector Kleenheat was found selling a cylinder at Tk 1,320 against Tk 1,250, Totalgas a cylinder at Tk 1,330 against Tk 1,260, and Basundhara at Tk 1,320 against Tk 1,250 last week.
Tabarek Hossain Tapu, a retailer agent and seller of LP gas cylinder of various companies in the city, said supply of the public company produced LP gas cylinders was  not only inadequate, but the customers were also dissatisfied over their quality, weight and quantity.
“We have to collect it in different ways by giving speed money and paying higher transportation cost. Therefore, we have no alternative but to sell it at a higher price than the company rate,” Tapu added.
However, Harunur Rashid, a school teacher and resident of Sonadanga R/A, claimed the government gas was available in the city market.
As a corollary, the price of firewood has also increased because many consumers are unable to afford the gas cylinder anymore.
Many economically disadvantaged families in the city and district use locally made Nonda, a kind of fire-stick made of cow dung that can be used as manure, and Tush-Kath, a kind of fire-stick made with paddy-husk by machine.
Deputy commissioner of Khulna Md Zamsher Ahammad Khandaker said at a meeting with the dealers and retailers that each cylinder of LP gas would be sold at 10 to 15 percent higher price than the factory rate considering the increase of transportation cost.
Secretary of Khulna district LP Gas Dealers Association Md Abul Kashem said that the private LP gas producing companies were raising the price every month claiming that the price has gone up at the international level, and that the higher cost of production forced them to hike the price.
Member secretary of Khulna Nagorik Samaj Advocate Firoj Ahmed said urban and middle class people as well as small food shops are dependent on LP gas cylinders as there is no easy or cheap alternative to the cooking fuel in the region.
Besides, if the government reduces the import duty and arranges supply of the gas for domestic use, it would benefit the people at all levels.
If the situation continues, the gas price will exceed Tk 1,400 to Tk. 1,500 per cylinder within a short period, consumers apprehended.
 

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