BERC chief says LPG import limits can be relaxed, highlights supply as ‘challenge’

Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed has said liquefied petroleum gas (LPG) imports have often exceeded the limit set by the government, and since it can be relaxed, it is not a problem.

He made the remarks at a roundtable discussion in Dhaka on Thursday, responding to LPG Operators Association of Bangladesh (LOAB) President Mohammed Amirul Haque’s claim that the government’s lack of response to requests to increase the import limit has caused instability in the LPG market.

Jalal also highlighted the impact of the stalemate in the Middle East surrounding Iran on the supply and market of LPG in Bangladesh.

He said the international market price has gone up due to increased purchases by China and the supply system has been disrupted due to the blacklisting of many ships in November and December.

LOAB organised this roundtable titled “Regulatory Challenges in the LPG Market Sector” in collaboration with Energy & Power Magazine.

During the discussion, a journalist questioned about the cylinder priced at Tk 1,305 being sold at around Tk 2,600.

In response, Amirul said he had applied on behalf of the organisation to increase the import limit of five companies, IGas, Meghna Group, Delta, Omera, and Jamuna.

“A year later, in November, the Ministry of Energy wrote that it could not increase the quantity again, as it does not align with the ministry’s policies.

“If the quantity cannot be increased, I will not be able to import it.”

Claiming LOAB does not set prices, he said: “BERC sets the pricing. If you go to the market to buy medicines or other products, will you buy them if they are sold at a higher price?

“There is a regulatory body. LOAB does not sell at a higher price.”

After his statement, Jalal talked about market regulation as well as import limits.

Showing information about imports from various companies, he said: “I don’t think the limit is a problem.”

Jalal said United Aygaz imported 183,000 tonnes against a limit of 100,000 tonnes, while Omera brought in 220,000 tonnes despite a limit of 300,000 tonnes.

Meghna imported 299,000 tonnes against a limit of 250,000 tonnes, Jamuna Spacetech brought in 208,000 tonnes despite a 180,000-tonne limit, and Delta imported 80,000 tonnes against a limit of 60,000 tonnes, he added.

Jalal said amid the stalemate in the Middle East involving Iran, China has purchased large volumes of LPG from the international market, while numerous ships were blacklisted in November and December.

“In November, 184 ships and 10 companies were placed on the sanctions list, followed by 29 ships in December.

“Due to fuel shortages from Iran, major buyers like China are making large-scale purchases, leaving smaller buyers in Bangladesh with fewer opportunities.”