THE increase in prices of liquefied petroleum gas has doubly jeopardised households and small businesses as consumers do not only need to pay more for the gas but, in many cases, also need to spend way too much in the event of weak enforcement of the prices on the retail market. The Energy Regulatory Commission increased the price of a 12-kilogram cylinder of gas, primarily used for cooking, twice in April — to Tk 1,940 on April 19, up from Tk 1,728 on April 2. The commission earlier increased the price for March to Tk 1,482. Despite the price increase, retailers in Dhaka keep charging consumers up to Tk 300 in excess for a cylinder, while some consumers are reported to be paying as much as Tk 2,250. The price rise has pushed up household expenditure and operational costs for small businesses such as tea stalls, restaurants and roadside food shops that depend heavily on petroleum gas for cooking. Low-income households, who shifted to liequefied petroleum gas after the suspension of fresh household gas connection and irregular supply of piped gas, have been especially affected. Retailers claim that they buy cylinders from dealers and companies at prices higher than the set rates.
Consumer rights groups put the situation down to oversight and enforcement failure. The proposition reflects a regulatory system that makes intervention in setting the prices but struggles to enforce compliance within a multi-layered and largely private supply chain. While the Energy Regulatory Commission adjusts monthly prices based on international contract rates and exchange fluctuation, the effectiveness of this mechanism weakens once liquefied petroleum gas moves beyond importers into domestic distribution channels. With the private sector controlling nearly the entire market, regulation is effectively concentrated to the point of announcement rather than implementation. This creates space for price distortion between dealers and retailers, where transactions remain largely opaque and difficult to monitor. A growing dependence on petroleum gas driven by declining piped gas supply and the suspension of household connections has also expanded a market that regulation has not kept pace with. Retailer’s claim for buying cylinders for higher prices from dealers points to possible breakdown or informal mark-up on the wholesale market, beyond the immediate reach of consumers and weakly monitored by enforcement authorities. As a result, price regulation functions more as a formal benchmark than a binding control, allowing the burden of inefficiency to shift onto households and small businesses already constrained by high living costs.
A strong and regular market oversight is essential to ensure that the petroleum gas sold for the set prices. The Directorate of National Consumer Rights Protection and the local administration must routinely conduct drives to attend to the issue. Without enforcement, price regulation will remain ineffective and consumers will continue to bear avoidable financial pressure.
