Fouzul dismisses LPG supply shortage, blames market manipulation for price hike

Power and Energy Adviser Muhammad Fouzul Kabir Khan has ruled out any supply shortage of liquefied petroleum gas (LPG), saying recent disruptions in cylinder availability were driven by market manipulation rather than problems with imports or production.

Speaking after a meeting of the Advisers Council Committee on Government Purchase at the Secretariat today (6 January), Fouzul said the LPG market in Bangladesh was overwhelmingly controlled by private operators.

"About 98% of the LPG business in Bangladesh is controlled by the private sector. Government involvement is limited to around 2%, where propane and butane are imported and bottled," he said, reports BSS.

The adviser said the recent abnormal price hike and reports of temporary scarcity were the result of "collusion and deliberate manoeuvring" by wholesalers and retailers. 

He alleged that some operators had withheld supplies in anticipation of higher prices after Bangladesh Energy Regulatory Commission's (BERC) latest adjustment, adding that LPG prices had risen by more than Tk50 per cylinder in recent weeks, which encouraged certain market players to take advantage of the situation.

He also rejected claims that the situation stemmed from any failure in supply. "From the import side, there is no reason for a crisis," Fouzul said, adding that LPG imports had increased compared to the previous month.

He said the government was closely monitoring the situation and would take all necessary measures to prevent further manipulation of the LPG market. He also noted that regulatory authority over LPG pricing lies primarily with BERC.

Fouzul further said a series of meetings had already taken place, involving the energy secretary and the BERC chairman, followed by discussions between the energy secretary and the LPG Operators Association of Bangladesh.

To address the issue, the government has launched enforcement drives across the country. Mobile courts have been deployed at district level to prevent hoarding, forced shop closures and artificial supply disruptions.

Fouzul said the cabinet secretary had instructed district administrations to take firm action. The matter was also discussed at the most recent law and order committee meeting, with the participation of police and other law enforcement agencies.

Monitoring teams from the Energy Division have been sent to Chattogram, the main hub for LPG imports and bottling, while inspections are also under way in Dhaka and other parts of the country.

"We believe this was a temporary situation and expect prices and supply to gradually normalise," he said.

Fouzul also referred to potential challenges in global shipping, noting that sanctions on certain vessels had created complications in international transport. However, he said these issues had not affected LPG supplies in the current month.

"There is no immediate impact, but we are closely monitoring future risks," he said.