DCs ordered to probe LPG shortage, overpricing

The government has directed district administrations to investigate whether liquefied petroleum gas (LPG) is being artificially withheld from the market and sold above the price fixed by the Bangladesh Energy Regulatory Commission (BERC), amid complaints of shortages and unusually high retail prices in some areas.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood issued the directive during an online meeting with DCs at the Secretariat on Wednesday.

The minister said there was no overall shortage of LPG in the country, but acknowledged that artificial scarcity could be being created in some areas to push up prices.

He asked the DCs to investigate why shortages were being reported despite adequate supplies and submit reports containing information and evidence on LPG availability and retail prices in their respective districts.

“Wherever supply shortages are identified, steps will be taken to increase supplies,” the minister said.

He also warned that action would be taken against those found creating artificial shortages or selling LPG above the prices fixed by BERC.

The district administrations were instructed to remain vigilant and closely monitor local LPG markets to ensure uninterrupted supply to consumers.

The government’s move comes amid reports that consumers in some areas have recently been paying around Tk2,000 or more for a 12kg cylinder, significantly above the September BERC-fixed retail price of Tk1,585. BERC reduced the price of a 12kg cylinder by Tk13 for September, setting the retail rate at Tk132.12 per kilogramme, inclusive of VAT.

Despite complaints from consumers, LPG import volumes have remained substantial. Bangladesh imported 123,975 tonnes of LPG in July and 157,760 tonnes in August, while imports reached 118,742 tonnes between September 1 and 22, according to data presented at a recent government meeting. The energy ministry and LPG operators have said the country has adequate stocks and that there is no overall shortage in the market.

However, market reports indicate that supplies to some retailers have been reduced, contributing to higher prices. Industry representatives have attributed the pressure partly to increased costs of securing fresh LPG cargoes, including premiums and freight charges, and said some operators have reduced market releases while awaiting the next BERC price adjustment.

The government is expected to consult LPG importers and other stakeholders after receiving reports from the district administrations.

The minister said necessary measures would then be taken to address any supply disruptions and ensure consumers receive LPG at the regulated price.

BERC is expected to announce its next monthly LPG price on October 4.