Sunday, 4 December, 2022

LPG use increases by 17 times in 10 years

LPG use increases by 17 times in 10 years

The use of liquefied petroleum gas (LPG) has increased by about 17 times over the last 10 years, thanks to government policy-level support and private sector initiative.

“Now, the LPG consumption has reached 800,000 tonnes which was only 45,000 tonnes in 2009,” said officials of the Energy and Mineral Resources Division (EMRD).

According to EMRD, the number of LPG consumers is also increased to 38 lakh during the same period as against 2.5 lakh in the year 2009.        

The present supply situation of LPG, however, fails to meet the country’s growing demand. They are yet to fulfill the local demand of 30 lakh tonnes of the bottled gas, according to statistics by the EMRD.

 “We are planning to make at least 70 percent of LPG available to consumers immediately,” said some others in EMRD.

The government has so far adopted five separate policies and rules to make the LPG available in the market with affordable prices, they said. The minimum LPG price for 12kg bottle is now about Tk 850 which was Tk 1400 in 2009.

The government has allowed 53 companies primarily for LPG bottling plants since 2013. Besides, the energy and mineral resources division has cancelled primary approval for 16 companies as they failed to fulfill requirements for setting up LPG plants within two years after getting approval, sources said.

The companies are: Nobab and Company, Fam Kam LPG Ltd, Jaj Bhuiyan Group, Green Town LP Gas Ltd, ISO Tech LP Gas Ltd, Fabo oil and gas company, Rupsha LP gas Ltd, Azna and Azna Ltd, Crystal Energy Ltd, Bangladesh LPG Ltd, Abul Khair Power Ltd, Decan LPG Ltd, Synergy Petrochemical Ltd, Golden LPG Ltd, Reliance Gas Products Ltd and Ameen Energy Ltd.

Besides, the government has also asked explanation why primary approval of four other companies would not be cancelled as they failed to make any physical progress for implementing the bottling plants. The companies are: Astral LPG Ltd, Delta LPG Ltd, Asia Oil and Gas Ltd and Eastern LP Gas and Oil Ltd.

Five LPG Bottling plants including Bashundhara LP Gas Ltd have secured final approval for bottling and marketing of LPG.  However, some eleven other LPG companies are now marketing LPG in the country without getting final approval from the energy and mineral resources division, sources confirmed.                      

State Minister for Power and Energy Nasrul Hamid recently warned authorities concerned not to allow marketing of LPG without proper approval.