Dr Tamim critical about interim govt’s LPG policy

 
Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed said on Thursday that recent geopolitical developments have exposed the vulnerability of Bangladesh's energy supply system, particularly the liquefied petroleum gas (LPG) market.
 
He noted that numerous ships and companies were blacklisted by the United States in November and December last year, with concerns that further sanctions may follow. As a result, Bangladesh experienced a decline in LPG imports last year. Same time, escalating tensions in the Middle East-especially involving Iran-led major buyers such as China to procure large volumes of LPG from the international market, squeezing supply opportunities for smaller importers like Bangladesh.

He made these remarks at a seminar titled "Regulatory Challenges in the LPG Market" held at the CIRDAP auditorium in the capital. Energy and Power magazine and LPG Operators Association of Bangladesh (LOAB) jointly organized the event while Energy and Power Editor Molla Amjad Hossain moderated.

Presenting import data, the BERC chairman said Bangladesh imported 1.29 million tonnes of LPG in 2022, 1.28 million tonnes in 2023, 1.61 million tonnes in 2024, and 1.465 million tonnes in 2025.

"As a regulatory body, we are working to simplify the process of issuing and renewing licenses and addressing other related matters," Ahmed said. He added that BERC is also taking steps to reduce consumer hardship in a sector where LPG import and distribution are entirely operated by the private sector.

Former Energy Adviser Professor M. Tamim, also Vice Chancellor of International University of Business Agriculture and Technology (IUBAT), presented the keynote paper, highlighting the growing financial burden on LPG operators. He said companies now spend more than Tk 1 crore annually on license renewals, a cost that ultimately impacts consumers.

"LPG plays a critical role in addressing Bangladesh's gas crisis and supporting the energy transition," Tamim said, noting that the private-sector-driven LPG industry has attracted investments of around USD 3.5 billion. LPG serves households, transport, industries, and rural communities, but remains fully import-dependent, making logistics efficiency and regulatory stability essential. "Unfortunately, the overall system remains weak," he added.

According to BERC, 52 companies are currently authorized to operate in the LPG sector, of which 33 have their own plants. A total of 17 companies are involved in importing LPG. Ahmed said while some firms import LPG only once or sporadically, seven or eight companies-including Petromax, Omera, Meghna, Jamuna, and United iGas-import LPG on a monthly basis.

Consumers Association of Bangladesh (CAB) President AHM Shafiquzzaman called for the removal of import duties on LPG, describing it as an essential daily commodity. "Consumers are often overlooked. We are ready to pay a fixed price, but authorities must ensure LPG is sold at the announced rate," he said.

LOAB President Mohammad Amirul Haque described the unloading of LPG from mother vessels at outer anchorage as "highly problematic." He urged the government to allocate 200 acres of land at Maheshkhali to enable operators to jointly manage unloading facilities more efficiently. He also pointed out that operators currently need to deal with five different regulatory agencies for licensing and approvals, calling for a single-window regulatory authority.

Energy Division Joint Secretary AKM Fazlul Haque said LPG is currently used by around six million families across the country.

Former BNP lawmaker Zahir Uddin Swapan said the discussion sent a positive policy signal to his party. "We have learned from past experiences and are concerned about the current system. If BNP comes to power, we will seek to fully utilize available digital facilities to improve governance," he said.