Despite efforts and promises made by the government and industry players prior to Ramadan, the shortage of liquefied petroleum gas (LPG), commonly used for cooking, is expected to persist. Importers have fallen short of the January target, exacerbating the crisis.
The government aimed for 167,600 tonnes of LPG in January from 12 private importers. However, data from the Bangladesh Energy Regulatory Commission (BERC) reveals only 105,000 tonnes were imported, lower than the previous month’s 126,000 tonnes. This shortage led to a spike in prices, with 12-kg LPG cylinders selling for over Tk 2,200 in parts of Dhaka.
Despite the shortfall in January, BERC and LPG operators anticipate meeting the February import target of 184,100 tonnes. BERC Chairman Jalal Ahmed noted that 26,000 tonnes were imported in the first two days of February, with major importers like Meghna Fresh LPG, Omera LPG, and United Aygaz LPG expected to ramp up imports this month.
Retail shop owners in Banasree, Mirpur, Tejgaon, and Dhanmondi reported selling 12-kg LPG cylinders for Tk 1,800 to Tk 2,000. BERC set the price at Tk 1,356 per cylinder for February, slightly higher than the previous month. While the scarcity has lessened compared to January, retailers are now selling without refusal, a shift from the previous month’s scenario.
To address the situation, the government implemented measures such as reducing value-added tax on LPG importing and bottling stages, along with exempting advance income tax. Additionally, the government streamlined the LPG import process by easing letter of credit (LC) regulations and removing import caps for companies.
An anonymous importer expressed that the situation became complex after the energy division permitted the Bangladesh Petroleum Corporation (BPC) to independently import LPG last month. However, BPC has yet to commence imports, as it is in the process of procuring LPG from global suppliers, causing delays.
President of the LPG Operators Association of Bangladesh, Mohammed Amirul Haque, mentioned efforts to boost imports and suggested a potential easing of the situation before Ramadan if Middle East crises are resolved. He emphasized that operators have not raised prices and urged law enforcement agencies to identify and intervene against any unjustified price hikes.
