The government inaction to take any alternative steps to import Liquefied Petroleum Gas (LPG) has pushed the country in serious havoc in market's supply chain.
Despite knowing the fresh US government sanctions, on more than 50 companies, individuals, and vessels accused of helping Iran export petroleum and liquefied petroleum gas (LPG)-- with shipments traced to Bangladesh, the Energy Division did not take any action, even conduct a meeting with the LPG Operators Association of Bangladesh (LOAB) to develop an alternative source or shipment chain for ensuring energy, mainly supply for cooking purposes the country.
This inaction has forced the country in severe supply crisis over the past two weeks. People are paying Tk 2,400 to buy a 12 Kg cylinder, the original price of which is Tk 1,253.
The present situation is complicated by shipping crisis, LOAB said. Twenty-nine ships used for regular LPG transport are under US sanctions, increasing transport costs and limiting availability. As a result, December imports fell to around 90,000 tonnes, compared with the usual 150,000 tonnes.
"We are selling LPG at BERC-regulated rates. If retailers raise prices, the regulator should monitor them," according to LOAB letter.
Due to a shortage of ships (some under US sanctions), and partial supply stoppages by major companies like Bashundhara have led to shortages across Dhaka, Chattogram, and other areas.
In October 2024, LOAB had raised concerns about the growing imports of Iranian LPG. According to the report, Iran has been offering Bangladeshi buyers prices $40-$50 per tonne below market rates, with monthly LPG exports to Bangladesh recently reaching 150,000 tonnes. This surge has enabled Iran to capture a quarter of Bangladesh's LPG market.
Some 26 operators import about 1.10 million tonnes of LPG from the international market, which accounts for around 98 per cent of the country's total LPG demand, while seven are satellite operators. About 35 million LPG cylinders are in use across the country's LPG businesses.
US Department of the Treasury's Office of Foreign Assets Control (OFAC) last year announced the measures as part of what it called a broader effort to degrade Iran's cash flow and cut off funding to groups Washington designates as terrorist organisations.
Among those newly sanctioned are UAE-based Slogal Energy DMCC and Markan White Trading Crude Oil Abroad Co LLC, accused of facilitating Iranian LPG shipments to South Asia since 2024. OFAC noted that multiple consignments reached end users in Sri Lanka and Bangladesh.
In its statement, the US Treasury Department cited two specific shipments of Iranian LPG delivered to Bangladesh involving vessels and entities under sanctions, along with general references to ongoing transport activities.
These actors have enabled the export of billions of dollars' worth of petroleum and petroleum products, providing critical revenue to the Iranian regime, US Treasury Secretary Scott Bessent earlier announced.
Treasury Secretary Scott Bessent said the new sanctions aim to dismantle Iran's energy export machine as part of Washington's ongoing maximum economic pressure campaign.
However, the sanctions could complicate energy procurement for smaller importers if suppliers or shipping firms linked to the network have been active in the region.
Meanwhile, Secretary to the Energy Division Saiful Islam and BERC held a meeting with the LOAB at their offices and urged the operators to increase import.
