Traders announce nationwide suspension of LPG cylinder sales

LPG Traders’ Cooperative Society Ltd has announced a nationwide halt to the supply and sale of liquefied petroleum gas (LPG) cylinders from Thursday (8 January).

They claimed that authorities’ failure to meet a set of demands caused the announcement.

In a notice issued on Wednesday evening, the organisation instructed distributors and retailers across the country to suspend LPG sales until further notice. It also said LPG lifting from all company plants would remain closed during the shutdown.

Earlier in the day, the traders’ body issued a 24-hour ultimatum, placing six demands including increased commissions for distributors and retailers and the withdrawal of fines imposed during enforcement drives. The group warned that LPG supply and marketing would be suspended indefinitely if the demands were not met.

LPG Traders’ Cooperative Society President Selim Khan said sales would remain suspended from Thursday morning. He said a meeting with the Bangladesh Energy Regulatory Commission (BERC) was scheduled for 3:00pm, adding that LPG sales would resume only if the demands were accepted. “Otherwise, the shutdown will continue,” he said.

The announcement comes amid ongoing volatility in the LPG market. At a press conference outside the National Press Club on Wednesday, the traders claimed the country is facing a severe LPG crisis. According to the organisation, about 55 million cylinders from 27 companies are in circulation, but only 12.5 million are currently being refilled, leaving nearly 42.5 million cylinders empty.

Selim Khan said the growing number of empty cylinders has sharply increased distributors’ costs, contributing to price hikes. He claimed that many companies have suspended operations, pushing their distributors towards bankruptcy. The traders are demanding that distributor commission be increased from Tk50 to Tk80 per cylinder, while retailer commission be raised from Tk45 to Tk75.

However, BERC Chairman Jalal Ahmed said the commission has no legal obligation to consider the demands of distributors, as they are not licensees. “Any proposal must come from the licensee, meaning the importers,” he said. He added that decisions can only be made following verification and a public hearing, where applicants must justify their claims.

The government, meanwhile, has denied any LPG shortage. On Tuesday, after a meeting of the Cabinet Committee on Government Purchase, Energy Adviser Muhammad Fouzul Kabir Khan said the perceived crisis was largely the result of market manipulation. He said district administrations, law enforcement agencies and the Directorate of National Consumer Rights Protection are working to stabilise the market and have imposed fines in various areas.

The traders’ body alleged that BERC revised LPG prices without consulting distributors and accused the authorities of creating fear through enforcement actions. They reiterated that LPG prices should be readjusted through consultations and warned that unless their demands are met, the nationwide suspension of LPG supply and sales will continue indefinitely.