Local LPG market turns volatile after Soleimani killing

The unregulated Liquefied Petroleum Gas (LPG) market has became volatile in the country as oil prices rose more than four percent following news of the death of Iranian general Qassem Soleimani.
According to the OPEC data, the Brent jumped US$ 4.4 per cent to US $ 69.16 and the WTI jumped 4.3 per cent to US $ 63.84 as investors are increasingly worried about the effects of a possible rise in tension in the Middle East that may cause changes in the supply of the commodity.
"The LP Gas price has been increased since Saturday in local market. The traders hiked the price in different areas as per their wish like      onion, salt or rice, although there is no reason to hike the price right now as the importers opened the L/C minimum three months back from Solemani's death," a senior official of the Energy Ministry told the Daily Observer on Sunday.
From January 2, a 12 KG LP Gas bottle in local market has been selling at TK 1100 against its original price of TK 900, the official said adding that it is not equal in all areas; in Dinajpur the price is TK 960.
"It came as a sharp reaction to price in international market; some events, accidents and other important issues always gives shock in oil market, but the price does not have any impact in domestic market now, so ,what is the reason behind this price hike," Energy expert Dr M Tamim asked.
He said that there is no regulation in LP Gas selling, it is a commodity that was not bought under any regulation, although there were two "LPG regulation Draft" in the hand of Energy Ministry since last one decade. Who will take care of it, he asked saying that "the government should establish a mechanism to regulate the market as soon as possible," he said.
"The importers and traders of LP Gas are trying to cash in on the situation just to make money, it is an unregulated sector, RPGCL (Rupantorito Prakitik Gas company Ltd) partially look into the issue but, in the true sense, there is none to regulate it but government cannot stay idly, they should stop it right now before it creates a serious havoc in public life," the eminent energy expert said.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid told reports that government wants to see that the Bangladesh Energy Regulatory Commission (BERC) should regulate the LP Gas item, however, he said, "if we are not able to control the market it would affect the common people badly, as they will increase the price before it increases in international market.