Nationwide LPG Shortage Sends Prices Soaring

Bangladesh is grappling with an acute shortage of liquefied petroleum gas (LPG), triggering a sharp surge in consumer prices across the country. Annual LPG demand in Bangladesh has historically grown by more than 10 per cent, a trend that has traditionally been met through increased imports. However, in 2024, this pattern reversed, leaving the market under significant strain during the final months of the year.

Data from the Bangladesh Energy Regulatory Commission (BERC) reveal a substantial decline in imports. The country imported nearly 150,000 tonnes less LPG in 2024 compared to the previous year, intensifying supply pressures for both household and commercial consumers.

LPG Imports Over Three Years (Tonnes)

Currently, 52 companies hold licences to operate within the LPG sector, according to BERC. Of these, 32 possess domestic cylinder-filling facilities, while 23 have import capabilities. Nevertheless, only eight companies maintained regular import operations in 2024, and several early-year importers halted activities later, exacerbating shortages.

A BERC official remarked that the crisis was foreseeable. “Monthly import data was available to the government, but without timely approvals, the shortage became inevitable,” the official noted. In response, the Energy Division has accelerated efforts to expand LPG imports, including prioritising letters of credit (LCs) and broadening import permissions.

BERC Chairman Jalal Ahmed attributed the shortage to multiple supply chain disruptions. “By November 2024, 170 vessels were delayed due to U.S. sanctions. In December, an additional 29 ships faced delays. Supplies from Iran ceased, and major buyers such as China intensified competition in the global market,” he explained.

Meanwhile, Amirul Haque, President of the LPG Operators of Bangladesh (LOAB), criticised delays in regulatory approvals. He highlighted that a consortium of five companies had sought permission to boost imports a year ago, yet authorisation and new plant licences were not granted in time.

Current Retail Prices Across Major Cities

Across the major cities of Dhaka, Chattogram, Barishal, and Rajshahi, households are increasingly relying on electric or kerosene stoves as cylinders become harder to procure. Retailers report that cylinders are sold within hours of arrival, leaving consumers frustrated and businesses struggling.

Unless supply rises substantially, market conditions are unlikely to stabilise soon. Although BERC and the Energy Division have initiated corrective measures, significant relief is anticipated only in the coming weeks. The ongoing LPG shortage continues to disrupt daily life, affecting both households and commercial enterprises nationwide.