Govt orders probe into alleged artificial LPG shortage, overpricing

The government has instructed deputy commissioners to investigate whether an artificial shortage of liquefied petroleum gas (LPG) is being created and cylinders are being sold above the regulated price despite adequate supply.

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud issued the instruction during an online meeting with deputy commissioners at the Secretariat on Wednesday.

The minister said there is no shortage of LPG supply in the country, but reports have emerged from different areas about shortages and sales at prices higher than the rates set by the Bangladesh Energy Regulatory Commission (BERC).

He asked the deputy commissioners to collect information on areas facing supply shortages, identify reasons for any disruption and investigate whether artificial scarcity is being created to raise prices. They were also asked to submit reports with supporting evidence.

Based on the information received from the districts, the government will hold discussions with importers and other stakeholders and take necessary measures, the minister said. Supply will also be increased in areas where shortages are identified.

“Artificially creating a shortage to increase LPG prices will not be tolerated,” he said, adding that action would be taken against those selling LPG above the BERC-fixed price.

The minister also directed the deputy commissioners to remain vigilant to ensure a normal LPG supply across the country.

LPG prices in Bangladesh have recently been affected by rising prices in the international market. Although importers have said there is no major supply crisis, consumers in several areas have reported being charged higher retail prices. In some places, the price of a 12kg LPG cylinder has reportedly exceeded Tk 2,000.

The government has therefore moved to identify where problems are occurring in the LPG supply chain and take measures to address them.

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