LPG shortage pushes 12kg cylinder prices up by Tk 500

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A shortage of liquefied petroleum gas (LPG), driven by declining piped gas supplies and rising import costs, has pushed retail prices well above government-set rates in Bangladesh.

12kg LPG cylinders are being sold for Tk 300 to Tk 500 above the Bangladesh Energy Regulatory Commission (BERC) rate of Tk 1,585. In some areas, LPG was unavailable even at higher prices.

Industry insiders said disruptions to global supplies amid the Middle East conflict have increased LPG and shipping costs. Freight costs have reportedly risen from the $160 per tonne used in BERC’s pricing formula to around $400.

BERC said LPG supplies were 20-25% higher than last year, but declining piped gas supplies have sharply increased demand. Petrobangla’s gas supply has fallen to around 2,600 million cubic feet per day against demand of nearly 4,000 mmcfd.

Consumers in several parts of Chattogram reported depleted stocks and higher prices, with 12kg cylinders selling for Tk 1,830 to Tk 2,100 depending on the brand. Some retailers said they had received no supply for a week.

BERC member Md Mizanur Rahman said private producers supplied 126,000 tonnes of LPG this month, compared with 100,000-106,000 tonnes in previous years. He said increased demand caused by piped gas shortages was putting additional pressure on the market.

Bangladesh LPG Operators Association President Mohammad Amirul Haque said private operators were continuing imports without government subsidies. He said importers and plant owners were not charging above official rates and that action should be taken against retailers selling LPG at higher prices.