Government subsidies for LPG cylinder were gobbled up by dealers and middlemen while subsidised furnace oil ended up at wrong hands over the last two financial years.
As a result, the subsidies did not benefit the consumers, an audit has found, exposing serious monitoring flaws at the BPC. In 2011-12, the government spent Tk 145 crore to sell LPG (liquefied petroleum gas) among consumers at subsidised rates.
The average production cost of a tonne of LPG was Tk 114,358 that year, but the government sold it at Tk 44,280 a tonne — less than half the production cost.
The subsidy for an LPG cylinder weighing 12.5 kg was Tk 875.97. The company sold 20,729 tonne LPG that year.
The BPC markets LPG through its subsidiaries — Padma, Meghna, Jamuna and Standard Asiatic oil companies. These companies appoint dealers to sell a cylinder of LPG at Tk 700.
“But the reality is an LPG cylinder can’t be found anywhere in the country at that price,” said the report, which has recently been sent to the finance ministry.
It also said although the local media extensively reported on the issue, the BPC had not taken any step to stop the malpractice.
Dealers involved in violating guidelines are supposed to see their dealership agreements terminated. But the audit report said there were no such examples.
“It manifests extreme indifference of the BPC in ensuring fixed prices at consumer level.”
The country also lost Tk 1.54 crore in 2010-11 and 2011-12 as the marketing companies sold imported furnace oil to companies that do not exist as well as to those that do not need the fuel.
“But it is the duty of the BPC to ensure who is using the subsidised oil and how,” the report noted.
-With The Daily Star input
