Govt allows LPG import on credit to ease supply crisis

The government has allowed the import of liquefied petroleum gas (LPG) on credit to tackle the ongoing supply shortage in the country. LPG can now be imported under buyer’s or supplier’s credit through offshore banking units of local banks, foreign banks, and financial institutions.

In a circular issued on Monday, Bangladesh Bank said LPG imported on credit will be treated as industrial raw material.

Due to the supply crunch, consumers have been facing difficulties for more than a month. Prices of LPG cylinders have risen by Tk350 to Tk1,000, depending on size, while cylinders are often unavailable at government-set prices. The shortage has disrupted cooking in households as well as in hotels and restaurants.

Explaining the decision to simplify the import process, Bangladesh Bank said LPG is usually imported in bulk and later filled into cylinders for domestic use. After import, storage, bottling, and operational processes take time for local importers, which delays supply to the market.

In this context, the central bank clarified that LPG imported under buyer’s or supplier’s credit will qualify as industrial raw material, with a maximum credit period of 270 days.

Earlier, on December 29, the central bank had extended the 270-day usance facility for importing industrial raw materials. Under the new decision, LPG importers will also receive the same facility.