Bangladesh has announced a sharp increase in the price of Liquefied Petroleum Gas (LPG) in an effort to restore market stability following more than two weeks of severe supply disruptions across the country. The official price adjustment comes at a time when consumers have been forced to pay exorbitant rates far exceeding government-fixed tariffs due to widespread artificial shortages.
The Bangladesh Energy Regulatory Commission (BERC) raised the retail price of the most widely used 12-kilogram LPG cylinder by Tk 252, setting the new official rate at Tk 1,837. In the preceding month, the price stood at Tk 1,585. Despite the former regulatory benchmark, acute shortages on the ground drove retail vendors to sell 12kg cylinders for as much as Tk 2,200 to Tk 2,300. Regulatory adjustments have also pushed the price of LPG to Tk 153.06 per kilogram, whilst auto gas—used primarily in motor vehicles—has been set at Tk 84.62 per litre. The newly mandated tariffs officially took effect on Sunday evening.
The ongoing crisis directly impacts nearly ten million households and commercial users nationwide. Cooking accounts for roughly 80 per cent of total LPG consumption, with industrial operations and the transport sector consuming the remainder. Because Bangladesh relies on private importers for 99 per cent of its supply, any disruption in distribution reverberates quickly throughout the national economy.
Import statistics provided by the LPG Operators Association of Bangladesh (LOAB) reveal that raw imports remained entirely steady over the period. Importers brought in 158,000 metric tonnes of LPG in August, followed by 156,000 metric tonnes in September. Industry insiders argue that because import volumes experienced no drop, the subsequent shortage points directly to deliberate market manipulation and hoarding.
According to representatives from the LPG Business Cooperative Society, primary distribution companies began curbing shipments around 20th September. Initial reductions of 30 per cent quickly escalated to supply cuts exceeding 50 per cent. For over a week, hundreds of dealer trucks sat waiting at company depots, running up significant transport costs that vendors ultimately passed on to end consumers. Supply flow only began to resume once BERC officially approved the higher price ceiling.
Importers cited rising freight costs triggered by ongoing geopolitical instability in the Middle East as a key factor behind the price review. They noted that BERC’s timely cost-adjustment would prevent future import bottlenecks. However, consumer rights organisations have strongly criticised the outcome. Representatives from the Consumers Association of Bangladesh (CAB) stated that because fresh shipments cannot arrive overnight, the immediate surge in market supply confirms that the crisis was engineered to force a price hike. The association has urged regulatory authorities to investigate hoarding practices and revoke the operating licences of culpable distributors.
In response, BERC has instructed twelve primary importing companies to submit daily breakdown figures covering import volumes and distribution metrics. Commission officials confirmed that field inspectors will verify these reports against physical stocks at depots to hold hoarders accountable. While market monitors expect supply levels to normalize in the coming days, consumers continue to face the brunt of erratic price fluctuations that have plagued the sector since early this year.
