Bangladesh Bank grants approval for LPG imports on credit.

In a significant move aimed at facilitating energy imports, Bangladesh Bank has announced an extension of credit facilities for businesses importing Liquefied Petroleum Gas (LPG). Under the new directive, importers can now access up to 270 days of deferred payment or credit for the import of LPG, providing much-needed liquidity support to the sector.

The central bank issued a formal notification on Monday outlining the revised framework. According to the circular, LPG is typically imported in bulk quantities and subsequently filled into cylinders for distribution across the domestic market. This process involves multiple stages, including storage, cylinder-filling, and distribution, which are time-intensive and can delay revenue realisation for importers.

Taking these operational realities into account, Bangladesh Bank has officially classified LPG as an industrial raw material for the purposes of commercial credit. This designation allows LPG importers to benefit from the same extended credit terms that are traditionally available for other essential industrial inputs.

Under the current foreign exchange regulations, the import of industrial raw materials can be financed through supplier’s credit or buyer’s credit, allowing a maximum credit period of 270 days. The central bank’s decision ensures that LPG importers can now avail themselves of similar timelines, easing short-term financing pressures and enhancing supply chain efficiency.

To implement the directive, banks have been instructed to provide assistance to importers in securing buyer’s credit or equivalent facilities from overseas banks and financial institutions. Additionally, provisions for bill discounting through offshore banking units have also been included, offering further flexibility to financial institutions and importers alike.

Key Details of Bangladesh Bank LPG Credit Facility

Industry experts have welcomed the move, noting that the extension of credit timelines could stabilise LPG supply and support importers’ cash flow, particularly during peak demand periods. Analysts also suggest that the directive may indirectly contribute to price stability in domestic LPG markets by reducing financial pressures on importers.

Bangladesh Bank’s initiative reflects the government’s broader commitment to strengthening energy infrastructure and ensuring a consistent supply of LPG, which remains a critical energy source for households and industries across the country.