LPG Shortage Causes Hardship; 1,585 Taka Cylinder Sold for 2,200 Taka

Consumers in various areas are facing difficulties due to LPG shortages and inflated prices. Although the price for a 12kg cylinder for September was set at 1,585 Taka, they are being sold for between 2,000 and 2,200 Taka. In some places, cylinders are unavailable for immediate delivery even when customers are willing to pay the higher price.

Effectively, consumers are paying 415 to 615 Taka above the fixed rate per cylinder. Some customers have to place orders one or two days in advance to secure a supply. However, importers and operators have informed the Energy Minister that there is no shortage of LPG stocks or supply in the country.
Consumers Waiting Despite Paying Higher Prices
According to a report by *Ittefaq*, Shafiqul Islam from Mohammadpur and Abu Jafar from Rampura stated that they purchased 12kg cylinders for 2,100 Taka last Thursday. They received the cylinders two days after requesting them from local vendors, causing significant inconvenience regarding cooking and meal arrangements for both families.

On September 2, the Bangladesh Energy Regulatory Commission (BERC) reduced the price of this cylinder by 13 Taka, setting it at 1,585 Taka. However, buyers in these areas are not reaping the benefits of this price reduction.
The report indicates that the annual demand for LPG in the country is approximately 1.6 million tonnes. About 80 percent of the consumed LPG is used for household cooking; consequently, the burden of higher prices directly impacts families' daily expenses.

Import Uncertainties and Allegations of Slow Sales
According to multiple operators and officials from the Energy Division, maritime transport is being disrupted by the impact of the war in the Middle East. Some long-term contract suppliers are unable to deliver cargo as they previously did. Procuring LPG from the open market has also become difficult, with shipping and transportation costs on the rise.
Data from the National Board of Revenue shows that 157,760 metric tonnes of LPG were imported in August. By September 22, 118,742 metric tons had been imported. However, one cannot conclude that total imports for September have declined simply by comparing a full month's figures with those of a 22-day period.
While 13 companies imported LPG in August, only nine did so during the period under review in September. Stakeholders fear that imports could be disrupted in October as well.
A member of the LPG operators' association claims that, based on current import figures, there should be no shortage at the consumer level until mid-October. He alleged that some are holding back stocks and selling slowly due to uncertainty regarding future imports. In his view, this limits supply and creates opportunities to charge higher prices.
The member further stated that the additional costs associated with cargo procurement and transportation are not adequately reflected in the fixed prices. Meanwhile, BERC-mandated prices are not being adhered to in the retail market either.
Operators claim no crisis exists; monitoring ordered
According to BERC data, 52 companies hold licenses for the LPG business. Of these, 23 have import capabilities, but only nine import regularly. Consequently, delays in the arrival of a few cargo shipments create a risk of supply shortages in the market.
Efforts to boost supply through government initiatives have not yet concluded. After granting permission to the Bangladesh Petroleum Corporation (BPC) for direct imports, multiple attempts to find a supplier failed to yield a response. Although a contract was later awarded to one company to supply 5,000 tons of LPG, the delivery schedule remains unconfirmed.
Meanwhile, during a meeting with Energy Minister Iqbal Hasan Mahmud at the Secretariat on Monday (September 28), operators claimed that stock and supply conditions were satisfactory. According to a ministry notification, the Minister directed that vigilance be maintained to prevent consumer-level shortages and public hardship caused by hoarding. The operators pledged their cooperation in this regard.