CAB seeks govt action to rein in LPG, sugar, edible oil prices

The Consumers Association of Bangladesh (CAB) has issued a seven-point demand to the government, warning of widespread consumer frustration amid what it calls abnormal and sustained price hikes in sugar, liquefied petroleum gas (LPG) and edible oils.

In a statement today (3 January), CAB accused an influential group of destabilising the sugar market by creating artificial shortages at the import, mill and supply stages through syndication and supply control.

It also criticised unjustified price increases in LPG, soybean oil, and palm oil, which it says are directly inflating the daily cost of living for ordinary Bangladeshis.

According to CAB, sugar prices had been relatively stable a week ago, but wholesale prices have surged sharply, with retail rates rising by Tk10 per kilogram.

The association attributed the spike to a halt in white sugar imports and alleged production and supply shortfalls at the mill level.

CAB claimed traders are once again engaging in price manipulation ahead of Ramadan, a pattern it says recurs annually.

Edible oil prices have also climbed in recent weeks. Soybean and palm oil rose by Tk5–10 per litre, and Trading Corporation of Bangladesh (TCB) data show retail bottled soybean oil prices have increased 12.85% over the past year.

CAB criticised the selective use of international market conditions to justify price hikes, noting that similar urgency is absent when prices decline, leaving consumers to bear one-sided price pressures.

On LPG, CAB said there is no valid reason for recent price increases or reported shortages. It alleged that some traders are charging well above government-set rates, citing rising demand, and suggested possible manipulation by importers and distributors.

The association pointed to the Bangladesh Energy Regulatory Commission (BERC), which sets prices but does not enforce them, allowing traders to routinely ignore official rates.

CAB warned that syndicates are deliberately exploiting administrative preoccupations ahead of Ramadan and other upcoming occasions. It said current price hikes are disconnected from actual supply conditions or international market trends, reflecting weak market management and inadequate monitoring.

"If markets for essential commodities such as LPG, sugar, and edible oil remain in the hands of syndicates, consumers' purchasing power will be eroded, and public confidence in the market system will weaken further," CAB said.

To address the crisis, CAB submitted seven demands to the government:

• Verify sugar production, stock and supply at the mill level to identify parties creating artificial shortages.

• Take exemplary legal action against syndicates and hoarders in sugar and edible oil markets.

• Ensure alignment between international prices, import costs, and domestic retail prices of edible oil.

• Strengthen administrative interventions to reduce unjustified gaps between wholesale and retail prices.

• Direct the Ministry of Power, Energy, and Mineral Resources to coordinate district administrations, the Directorate of National Consumer Rights Protection, and law enforcement to enforce government-set LPG prices.

• Intensify monitoring of LPG importers and distributors, covering stock, supply, and retail sales.

• Maintain market surveillance of essential commodities at district and upazila levels, ensuring enforcement is not compromised by elections or other distractions, under clear directives from the highest government authorities.

CAB cautioned that failure to implement immediate, strict, and coordinated measures could exacerbate volatility in sugar, LPG cylinders, and other essential markets.

The association expressed the hope that the government would act swiftly to secure fair prices and consumer relief.