Government moves to import LPG to stabilise market

To ensure market stability and protect consumers from soaring prices, the government is planning to import Liquefied Petroleum Gas (LPG) under a state-managed arrangement. 

The imported LPG will be supplied to private distributors, who will be allowed to sell it with a limited profit margin, officials said.

The move comes amid reports of chaos in the LPG market, where bottled gas distributors have reportedly been charging almost double the price set by the Bangladesh Energy Regulatory Commission (BERC).

Consumers across the country are paying between Tk1,800 and Tk2,500 for a 12kg cylinder, while the government-fixed price is around Tk1,300–1,350.

Speaking to reporters today (24 February), Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku said, "There is anarchy in the LPG market. To hold this back, the government will import LPG in bulk quantity, from where distributors will take it."

The minister said the market is currently dominated by a syndicate. Importers have blamed the crisis on a lack of bank support and a shortage of suppliers following the toppling of the Sheikh Hasina regime. 

"There are many operators in this sector. Following the fallout of the Hasina regime, some of the operators are no longer in business," he added.

Tuku confirmed that the concerned desk is already working on importing LPG under a government arrangement and said, "We will soon clear our policy." 

The initiative is a continuation of steps taken earlier by the administration of former Power and Energy Adviser Fouzul Kabir Khan.

BPC Seeks Policy Approval

To facilitate the import process, Bangladesh Petroleum Corporation (BPC) has formally appealed to the Energy and Mineral Resources Division for policy approval, citing supply shortages and price volatility. 

In a letter sent on 10 January, BPC Chairman Md Amin Ul Ahsan wrote that the LPG market had recently experienced supply deficits and "abnormal price instability," with multiple national dailies reporting that consumers were forced to buy LPG at unusually high prices.

Earlier, the issue of LPG import by BPC was discussed at a virtual meeting on 7 January 2026, chaired by the secretary of the Energy and Mineral Resources Division.

Private Sector Control Limits Government Action

According to the letter, LPG import and supply in Bangladesh is currently handled entirely by the private sector, with no direct government-level import arrangement. 

"As a result, in the event of artificial shortages or supply disruptions, the government's ability to intervene promptly and stabilise the market remains limited," the letter noted.

BPC currently meets only 1.33% of the country's LPG demand through LPG produced as a by-product at Eastern Refinery Limited (ERL) during crude oil processing.

Infrastructure Constraints

BPC acknowledged that it lacks its own infrastructure such as jetty-based pipelines, flow meters, or storage tanks for importing, unloading, and storing LPG.

Private operators currently unload LPG at the Matarbari deep-sea area using lighter vessels before storing it at their own terminals. 

BPC said it could adopt a similar arrangement, using lightering vessels of interested private operators for unloading and distribution.

Ensuring Competition and Consumer Protection

In its letter, BPC formally sought policy guidance and approval from the Energy and Mineral Resources Division to proceed with LPG imports and supply to private operators. 

The state-run corporation said the initiative would help control artificial shortages, protect consumer interests, and ensure a competitive and stable market offering much-needed relief to households already burdened by high energy costs.