LPG shortage pushes cylinder prices above Tk 2,000

A supply crunch in Bangladesh's retail LPG market has pushed the price of a 12kg cylinder well above the government-fixed rate, with consumers in some areas paying more than Tk 2,000 despite the Bangladesh Energy Regulatory Commission (BERC) setting the September price at Tk 1,585.

Retailers and consumers have reported shortages of several LPG brands, while recent industry reports suggest that a decline in imports has tightened supplies and driven up prices. Bangladesh imported 157,760 tonnes of LPG in August, compared with 118,742 tonnes between September 1 and 22, according to National Board of Revenue data. Industry sources have attributed the pressure partly to disruptions along key shipping routes, vessel shortages and higher freight costs amid geopolitical tensions in the Middle East.

The BERC had reduced the 12kg cylinder price by Tk 13 in September from Tk 1,598 in August, based on international LPG prices, freight costs, traders' premiums and the exchange rate. Nevertheless, consumers have struggled to obtain cylinders at the regulated price, with reports of retail prices exceeding Tk 2,000 and, in some cases, going significantly higher.

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At a meeting with Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood on Monday, LPG operators maintained that the country's overall supply and stock position remained satisfactory and denied any nationwide shortage. The minister, however, urged stakeholders to ensure uninterrupted supplies and warned against hoarding or creating artificial shortages.