Editorial
Malpractices kill subsidy effectiveness
Dithering by BPC hurts consumers
A government audit of Bangladesh Petroleum Corporation's (BPC) performance on sale of liquefied petroleum gas (LPG) cylinders for consumption at household level has unearthed some disturbing facts. Over a two-year period, the national exchequer has expended Tk145crore as subsidy so that consumers could buy LPG cylinders at affordable rates. Unfortunately, thanks primarily to lax oversight by BPC, nationwide dealers appointed by BPC subsidiary companies failed to stick to agreed retail price of Tk700 per cylinder.
Given the huge shortfalls in gas availability and associated pilferage of this precious commodity, it makes sense to have bottled LPG for cooking purpose. But the practice of letting organised business syndicates take over control of its supply, showing the thumb at BPC by jacking up prices and holding consumers at ransom is hardly acceptable. But that is precisely what has happened. Although violating retail prices set by government is supposed to cost dealers their dealership, BPC has not moved against errant dealers.
We are concerned at the distress caused to millions of consumers because a state-owned agency is failing to act its part. The question at this juncture is precisely what is the purpose of subsiding LPG if the authority in question sits idle? Why must consumers be forced to buy cooking oil at artificially inflated prices because BPC fails to take action? As regulator, BPC must get its monitoring act together and not ignore the fact that anomalies are taking place which must be straightened out now.
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