LPG worth 1,200 now costs 1,800 – but who’s watching

Residents across Dhaka are struggling to find domestic LPG cylinders as prices surge far beyond government-regulated rates, sparking concern among consumers and industry officials alike.

On the morning of 24 December, Mohammadpur resident Kausar Khan contacted several local shops after his LPG cylinder ran out, but none had stock available. Eventually, he managed to purchase a single cylinder at 1,500 taka—a sharp rise from the official price. “Sudden increases like this are hard to anticipate,” he said.

Similarly, Farzana Neela of Kallyanpur New Market reported that on 30 December, despite checking multiple outlets, she could only obtain a 12-kg cylinder at 1,800 taka, 500 taka above the regulated price. In Mirpur’s Kazipara, Asma Akhtar faced a similar ordeal on 31 December, ultimately paying 2,100 taka for a cylinder officially priced at 1,253 taka in December.

The 12-kg LPG cylinder is the most commonly used for household cooking, and the price surge has persisted for over two weeks. Retailers from four major areas in Dhaka reported that although demand is high, supply is critically low, forcing consumers to pay extra and enabling some sellers to charge beyond the official rate.

Selim Khan, president of the National LPG Cylinder Distributors’ Association, expressed alarm at the abnormal price hikes. Speaking to Prothom Alo, he noted that most companies have halted supply, with only a few distributors delivering limited stock. “If a retailer requests 1,000 cylinders, only 200–300 may be supplied. Trucks often sit idle, increasing costs, and companies charge an additional 70–80 taka per cylinder,” he said.

Industry sources cite multiple reasons for the price spike, including higher global demand for LPG in winter and a shipping crisis. Twenty-nine ships typically transporting LPG have been affected by U.S. sanctions, reducing imports. December’s imports fell to 90,000 tonnes compared to an average monthly import of 130,000–140,000 tonnes.

Humayun Rashid, Vice President of LPG Operators of Bangladesh (LOAB), confirmed that imports fell by nearly 40% in December, creating supply constraints, though companies are still supplying LPG to distributors at the regulated price. Retailers, however, remain outside such controls.

The Bangladesh Energy Regulatory Commission (BERC) has been monitoring the situation. Since April 2021, it has fixed monthly LPG prices, but retail overcharging persists. In response, BERC recently instructed LOAB to ensure all cylinders are sold at 104.41 taka per kg, amounting to 1,253 taka for a 12-kg cylinder. Any additional charges are strictly prohibited unless formally documented for cost adjustments.

M Shamsul Alam, energy adviser at the Consumers Association of Bangladesh (CAB), warned that the current situation undermines public trust in regulatory institutions. “Even when supply is limited, selling above the official price is illegal. Yet BERC cannot enforce penalties effectively, leaving consumers to bear the extra cost,” he said.

With winter demand continuing and shipping delays unresolved, households in Dhaka and beyond face escalating LPG bills and persistent uncertainty about availability.