Amid ongoing supply concerns, imports of liquefied petroleum gas (LPG) have increased this month compared to last month. However, full relief is yet to return to the market.
Traders say initiatives to increase LPG imports from alternative sources due to tensions in the Middle East will reach ports by the end of this month, further boosting supplies.
A visit to the retail market revealed that despite higher imports, consumers are still paying more than the price set by the government. The price set by the government for a 12 kg LPG cylinder is Tk 1,356.
However, depending on the area in Dhaka and Chattogram, consumers are paying between Rs 1,600 and Rs 1,700. During the severe crisis in January, the price of a 12 kg cylinder had increased to between Tk 2,000 and Tk 2,500.
LPG Operators Association of Bangladesh (LOAB) president Amirul Haq told Prothom Alo on Sunday that based on the current import levels, there is no shortage at the consumer level.
Although importers are selling LPG at government-fixed prices, retailers are charging higher rates. He said the tense situation in the Middle East has prompted imports from alternative sources, which will soon increase the overall supply.
Imports increased in February
According to data from Chattogram Customs and Mongla Customs, 91,000 tonnes of LPG was imported through both the ports in February (till 21st). During the same period last month, imports stood at 63,000 tonnes – an increase of 44 percent. Apart from these two ports, private jetties at Sitakund import 20,000 to 22,000 tonnes of LPG monthly.
During the interim government period last November, LPG imports declined by 44 percent compared to the same period last year. Imports did not increase even in December and January.
Several companies, including Meghna Group and Delta LPG, sought government approval to increase imports but did not get the approval, resulting in a huge shortage in January. Demand for LPG has also increased due to the gas crisis. Amid the crisis, the then interim government finally allowed businesses to increase imports.
Import data from Chattogram, Mongla and Sitakunda shows that 1.754 million tonnes of LPG was imported in the last financial year. The daily demand for LPG is around 5,000 tonnes on an average.
Meghna’s five ships are carrying 57,000 tonnes weight
According to LOAB sources, 28 companies operate in the LPG sector in Bangladesh, of which 23 have import approval. In the current financial year, 16 companies have been active in importing LPG.
Nine of them account for 92 percent of total imports, while the volume of the remaining seven is relatively small. At least four companies, including Beximco, have suspended LPG imports. In this context, active companies are increasing their shipments.
Three tankers carrying 10,000 tonnes of LPG are headed to Sitakund, Chattogram and Mongla ports. The largest quantity in the pipeline currently belongs to Meghna Group of Industries (MGI).
Its five ships carrying 57,000 tonnes of LPG are en route to Chattogram. Of these, three tankers carrying 24,000 tonnes will reach the port between February 26 and 28. Two additional ships carrying 33,000 tonnes are expected in the first half of March.
Other companies including United Ayagaz, Jamuna Spacetech and Omera Petroleum have also increased imports.
Responding to questions, Mustafa Kamal, chairman of Meghna Group of Industries, told Prothom Alo that apart from regular sources, the company has taken the initiative to import LPG from Vietnam, Taiwan and Malaysia. LPG shipments currently en route are expected to arrive within two weeks, leading to a further increase in supply.
LOAB leaders say that if imports continue, relief will return to the market. However, unless price control is ensured at the retail level, consumer suffering will not be completely alleviated.