LPG shortage pushes 12kg cylinder price above Tk 2,000

A sharp drop in liquefied petroleum gas imports has triggered a nationwide supply crunch, pushing the retail price of a 12kg LPG cylinder above Tk 2,000 despite a much lower price set by the Bangladesh Energy Regulatory Commission (BERC).

According to BERC and LPG importers, Bangladesh imported around 160,000 tonnes of LPG in August, but the volume fell to about 120,000 tonnes in September — a drop of roughly 40,000 tonnes in a month.

BERC on September 2 cut the official price of a 12kg cylinder by Tk 13 to Tk 1,585. But consumers are now paying Tk 2,000–2,100 in the retail market, with traders reportedly charging Tk 400–500 above the regulated price amid the supply shortage.

Importers and industry operators attributed the disruption to the ongoing conflict in the Middle East, which has affected key shipping routes including the Red Sea and Strait of Hormuz. Alternative routes have increased both transportation costs and delivery times, while LPG cargoes have become harder to secure.

Abu Sayeed Reza, chief marketing officer of Meghna Fresh LPG, said the biggest problem was securing cargo. He said some international suppliers had cut contracted supplies by around 20%, while cargoes were unavailable even in the spot market despite higher premiums.

Members of the LPG Operators Association of Bangladesh said cargo premiums had risen to $260–400 per tonne from BERC’s benchmark of $160. They said the higher premiums and transport costs were not being reflected in BERC’s monthly pricing formula, making imports increasingly difficult for operators.

Omera Petroleum CEO Tanzim Chowdhury said the company imported around 30,000 tonnes of LPG in September and was making efforts to maintain supplies despite disruptions at the producer end.

Bangladesh’s annual LPG demand stands at around 1.5–1.6 million tonnes, with roughly 80 percent used for household cooking. The private sector supplies about 99 percent of the market.

BERC Chairman Jalal Ahmed said the shortage developed after some scheduled cargoes failed to arrive on time. He said the commission would hold talks with importers soon to address the crisis.