Petroleum Corporation seeks to enhance import volume of LPG

Bangladesh Petroleum Corporation (BPC) has sought government permission to enhance the import of Liquefied Petroleum Gas (LPG) against the backdrop of soaring demand and to ensure its uninterrupted supply, officials said today.

BPC officials said their Chairman, Md Amin Ul Ahsan, sent a letter to the Energy Division earlier this week seeking government approval for enhanced imports to mitigate LPG demand and stabilise its price.

The BPC move came amid soaring prices and shortages of LPG affecting consumers across the country.

The imported LPG is distributed by private operators.

The officials said the letter also pointed out BPC's willingness to develop necessary infrastructure like jetties, pipelines, and storage tanks alongside the existing government LPG facilities for unloading and storage.

They said that, in collaboration with the LPG Operators Association of Bangladesh (LOAB), BPC would prepare an updated operators list, determine the import volume and prices, and finalize unloading and distribution processes.

BPC officials said there were instances when they imported LPG by inviting quotations from suppliers under a government-to-government (G-to-G) arrangement to meet demand spikes or supply shortages.

"Following the previous policy, the BPC could invite LPG price quotations from LPG suppliers, refinery industries, and other related organizations under the G-to-G method," a BPC official said.

Currently, Eastern Refinery Limited (ERL) meets only 1.33% of the country's LPG demand. Therefore, direct imports are essential to address the crisis and ensure a competitive and sustainable supply of LPG.