State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Sunday said that an effective pricing mechanism will be introduced in consultation with private market operators to months to control the prices.
Talking with the journalists at the sidelines of the `4th Asia LPG Summit 2017` which started at the Bashundhara International Convention Center in Dhaka, Nasrul said that government would take initiatives to control the LPG price within the next two months.
World LPG Association organised the two-day summit where a new organisation `LPG Operators Association of Bangladesh` (LOAB) was floated with Bangladesh Awami League`s president private sector affairs adviser Salman F Rahman its president.
Admitting the sale of LPG at inflated rates in different areas, Nasrul said this happens due to transportation cost. “We are studying how the LPG price could be linked with the international market.”
He said the Energy and Mineral Resources Division has already formulated a policy over investment in the LPG sector. "Now we are working to determine how and who will regulate the LPG market and how could be the safety will be ensured."
Earlier, speaking as the chief guest at the inauguration ceremony, he also said that 70 percent of the existing household gas connections will be replaced with LPG over the next two years.
"Our original plan was three years. But, one year has already elapsed. Now two years are left for the job to be done. Hopefully, we will be able to introduce LPG in 70 percent areas," he said.
He said if the natural gas is diverted to industries from household and motor vehicles, it would give more benefits to the economy.
Urging the private investors to go for more investment in LPG sector, he said the economy is growing fast and there will be a huge LPG market in Bangladesh.
He said the government has a plan to replace the CNG with Auto Gas for motor vehicles as well. Even LPG could be used in small and medium industries, he added.
Speaking on the occasion, Salman F Rahman said that the government has gradually increased the price of gas through pipeline to discourage gas usage for domestic purposes and for vehicles.
“The country only has limited about of gas left. We should be careful in using it. Our Prime Minister Sheikh Hasina has thus put emphasis in energy alternative like LPG,” he said.
Director of World LPG Association David Tyler, Secretary of Energy and Mineral Resources Division Nazimuddin Chowdhury, Assistant General Manager of Omera Petroleum Limited Tanzeem Chowdhury also spoke at the function. About 100 companies from 20 countries are participating in the summit.