LPG operators seek one-stop service, digital licensing amid regulatory hurdles

Entrepreneurs in Bangladesh's Liquefied Petroleum Gas (LPG) sector have demanded a one-stop service and digital licensing system to reduce regulatory delays and bureaucratic complexities that they say are hindering investment and the safe expansion of the industry.

The demands were raised at a roundtable discussion on the LPG sector jointly organised by Energy and Power and the LPG Operators Association of Bangladesh (LOAB) at the Bangladesh Energy Regulatory Commission (BERC) headquarters today (17 May).

Speaking at the event, BERC Chairman Jalal Ahmed said LPG use is increasing across households, commercial establishments and industries, but safety management and policy coordination are not progressing at the same pace, creating significant risks.

He warned that the uncontrolled spread of LPG use, particularly the use of multiple cylinders in residential buildings, is increasing the risk of major accidents.

Highlighting weak safety management and slow services from the Department of Explosives, Jalal stressed the need for nationwide awareness campaigns, expanded training programmes and closer coordination among regulators and industry stakeholders to ensure safe and disciplined growth of the sector.

LOAB President Mohammad Amirul Haque said the use of LPG autogas began rising after the government halted new CNG stations and household gas connections around 2009-10 due to natural gas shortages.

He said around 1,000 LPG autogas stations received approvals following the introduction of the LPG Autogas Station Installation and Operation Policy 2016, but many entrepreneurs later faced difficulties obtaining licences because of complicated regulations and lengthy approval procedures.

According to LOAB, nearly 700 autogas stations are currently operating without licences from the Department of Explosives and BERC. Entrepreneurs are required to secure approvals from multiple agencies, including the Fire Service, Department of Environment and Roads and Highways Department, resulting in delays and higher costs.

The association said around Tk1,500 crore has been invested in nearly 1,000 LPG stations nationwide, while about 2,00,000 vehicles have already been converted to LPG.

LOAB recommended simplifying LPG policies, introducing automated digital licensing, creating a single regulatory authority for one-stop services, and easing dealership restrictions so station owners can source LPG from alternative suppliers during shortages.

BUET Professor Yasir Arafat Khan, BERC Member (Petroleum) Sultana Razia and Energy and Power Editor Molla Amzad also spoke at the event.