LPG Price Hike Proposal: 410 Taka Increase Suggested

State-owned LPG Gas Limited has proposed a significant increase in the price of a 12.5-kilogram cylinder of liquefied petroleum gas (LPG), recommending a rise of 410 taka to bring the retail price to 1,235 taka.

The company’s Managing Director, Md. Yusuf Hossain Bhuiya, confirmed the proposal to the media, explaining the rationale behind the move. He stated that the current subsidised rates of state-owned LPG are significantly lower than those of private suppliers, leading to “cross-filling” practices where subsidised cylinders are diverted for resale.

To address this discrepancy, LPG Gas Limited has submitted the proposal based on recommendations from the Bangladesh Petroleum Corporation (BPC)’s Pricing Determination Committee. The committee’s assessment considers market stability, operational costs, and equitable distribution of subsidised gas.

Historical Context of LPG Pricing

This is not the first time the company has proposed a price adjustment. Previously, on 15 September 2025, Bangladesh LPG Limited, under BPC ownership, had suggested raising the price of a 12.5 kg cylinder from 825 taka to 925 taka. At that time, the increase aimed to curb cross-filling and cover rising local transportation, operational, and dealer costs. However, the Bangladesh Energy Regulatory Commission (BERC) rejected the proposal, citing concerns over consumer affordability.

The current proposal reflects ongoing pressures in the LPG sector, including higher transportation expenses, rising operational charges, and the need to harmonise state-subsidised prices with the private market. If approved, this would mark one of the largest single increases in recent years for state-owned LPG.

Proposed LPG Price Adjustment

Analysts warn that such a steep increase could impact household budgets nationwide, particularly for low- and middle-income families who rely on LPG for daily cooking. Government regulators are expected to review the proposal carefully before reaching a final decision.

Md. Bhuiya emphasised that the proposed adjustment is crucial to ensure a sustainable LPG supply chain while discouraging market distortions caused by price differences between state-owned and private cylinders.