Syndicate in LP gas: Who’s responsible for the crisis?

For many households in Bogura, cooking has returned to the old clay stove. LPG gas has been in short supply for the past two days, and when it is available, prices are skyrocketing.

“I went to the market for a cylinder, but none was available. The next day, I found one, but it was too expensive—1,750 taka! I can’t afford that, so I’m cooking on my clay stove for now. I’ll buy gas when the price comes down,” said Siam Islam, a resident of Shakpala in Bagura.

Even when cylinders are in stock, buyers face another hurdle: shops demand higher prices. “Dealers say they have to pay more, so the price has gone up,” Siam added.

But according to the Bangladesh Energy Regulatory Commission (BERC), the official price of a 12 kg cylinder for January is just 1,306 taka. Yet in Bogura, it’s being sold for 1,450 to 1,750 taka—well above the regulated rate.

Consumers accuse retailers of creating an artificial shortage. “At first, shops say there’s no gas. Only if you agree to pay extra do they give you a cylinder,” complained several buyers.

Retailers themselves admit that supply is irregular. “I have no cylinders in my shop now,” said Suman Hossain. “Dealers want higher prices, so we can’t buy. Many desperate customers ask us to bring gas even at these rates.”

Some dishonest traders are clearly exploiting the shortage. A visit to R.K. Radhakrishna Trading, Petromax’s Bogura dealer, found warehouses filled only with empty cylinders. Owner Sadhan Chandra Modok said, “We need 4,000 cylinders weekly, but the company supplied only 100. We haven’t raised prices ourselves. The supply disruption comes from the companies.”

Noor Uddin, Northern Bangladesh distributor for Jamuna Spacetech LPG, said a shipment was delayed at Chattogram port, causing the shortage. He expects things to improve once the shipment arrives around January 8 or 9.

However, many buyers and retailers doubt this explanation. Allegations are rising that a syndicate is artificially creating a crisis to push prices higher—a claim the government supports.

Muhammad Fouzul Kabir Khan, adviser on Power, Energy, and Mineral Resources, blamed the unusual price hike on manipulation by retailers and wholesalers. “Some traders are taking advantage of the situation to make extra profit,” he said.

Bogura’s Deputy Commissioner, Md. Tawfiqul Rahman, confirmed that administrative operations are underway to control prices. “We carried out raids and collected fines yesterday. We’re not machines; it will take time to fix everything. But the situation should normalize soon,” he said.

For now, households like Siam’s continue to cook on clay stoves, waiting for relief and hoping prices return to the official rate.