LPG pricing: Don’t hurt investors

17 June, 2021 12:00 AM printer

Inspiring people to use LPG instead of natural gas is one of the focus areas of the government as the reserve of the latter is depleting fast. Moreover, in rural areas widespread use of LPG in place of traditional charcoal and firewood for cooking is also being encouraged as this clean-burning fossil fuel releases low levels of short-lived climate pollutants, and thus can contribute to preserving the environment and capturing CO2 emissions.

Taking these factors into account, countries around the globe are making efforts to introduce LPG to every house. The government of our country also took some commendable initiatives to encourage people to use LPG, and the people responded positively. As a result, the country witnessed a quick expansion of the industry within just a few years. But, the businessmen who made huge investment in this sector are now worried about the future of their investment as they reportedly have to incur huge losses due to selling LPG at BERC-fixed price.

According to the LOAB, the adjustment of price-rate is discriminatory and arbitrary for private companies which hold 98 per cent of the market share. The LOAB pointed out some particular problems, prompting them to incur a huge loss every month, along with discouraging retailers to stop LPG selling. They feared that at the nascent stage of the industry, the discriminatory decision from the authorities concerned, the BERC in particular, may stymie the investment and growth of the sector. They are urging the government to formulate a prudent policy for the LGP sector as they are now facing problems to run their business with complexities in guidelines from 18 regulatory offices.

Trade and business play the most pivotal role in the economic development of any country. Therefore, it is expected that the authorities would uphold business friendly policies by striking the right balance between interests of the investors and consumers. When it is not anticipated that the mass people have to pay an illogically higher price for LPG, it will also be irrational to compel investors to incur loss after investing a huge amount of money. So, the government has to work out ways as soon as possible that will serve the interest of both sections. After all, we do not have a better alternative but to promote green fuels like LPG to attain the seventh of the Sustainable Development Goals (SDGs) —ensuring affordable and clean energy by 2030.