Nationwide LPG Supply Suspension Threatens Energy Security

A significant disruption to Bangladesh’s domestic energy supply is imminent as the LP Gas Businessmen’s Cooperative Society Limited has announced a nationwide suspension of cylinder sales, effective from Thursday, 8 January 2026. This industrial action, which includes a halt on extracting gas from the plants of all 27 private LPG companies, will remain in effect until the government addresses a six-point list of grievances.

The Core Conflict: Commissions and Enforcement

The decision follows a 24-hour ultimatum issued by the association on Wednesday morning. The traders are demanding a substantial increase in profit margins and an immediate cessation of mobile court fines led by the Directorate of National Consumers’ Right Protection (DNCRP). According to the association’s president, Selim Khan, the current commission structure is no longer viable due to a severe shortage of operational cylinders in the market.

Table: Comparison of Current vs. Demanded Profit Commissions

A Crisis of “Empty Cylinders”

The association highlights a staggering disparity in the market: out of approximately 55 million cylinders introduced by 27 companies, only 12.5 million are currently being refilled. This leaves 42.5 million cylinders—nearly 77% of the total inventory—lying dormant. This scarcity has reportedly driven up operational costs for distributors, pushing many towards bankruptcy.

Traders argue that the Bangladesh Energy Regulatory Commission (BERC) has adjusted consumer prices without consulting the distributors, failing to account for these rising logistical overheads. Furthermore, they claim that aggressive government raids and fines are creating an “atmosphere of panic,” forcing honest businessmen to shutter their operations.

The Government’s Counter-Stance

The authorities have met these demands with skepticism. Jalal Ahmed, Chairman of BERC, clarified that since distributors are not direct licensees of the commission (the importers are), their demands cannot be legally entertained in isolation. He noted that any price adjustment must be proposed by importers and subjected to a rigorous public hearing process.

Meanwhile, the Energy Adviser, Muhammad Fouzul Kabir Khan, has dismissed claims of a gas shortage. Speaking after a cabinet committee meeting, he asserted that any perceived scarcity is the result of market manipulation and hoarding. He reaffirmed that law enforcement and district administrations would continue their oversight to protect consumers from artificial price hikes.

What Happens Next?

A high-stakes meeting between the BERC and the LPG Businessmen’s Cooperative Society is scheduled for 3:00 PM on Thursday. The outcome of this dialogue will determine whether the suspension is lifted or if the country faces a prolonged energy crisis. For the millions of households and small eateries reliant on bottled gas, the next 24 hours will be critical.