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Energy ministry: Adequate LPG stock, artificial shortage behind price spike

The information came in a Saturday press release after an emergency meeting on LPG price hikes and cylinder shortages

Update : 04 Jan 2026, 10:52 PM

The Ministry of Power, Energy and Mineral Resources has said there is no shortage of liquefied petroleum gas (LPG) in the country and has instructed the administration to take legal action against those responsible for creating an artificial crisis in the market.

The information was shared in a press release issued on Sunday following an emergency meeting between the ministry and stakeholders in the LPG sector, amid reports of abnormal price hikes and widespread unavailability of cylinders at the retail level.

According to the release, it has been observed that LPG prices at the retail stage have risen sharply beyond normal levels. Taking the matter seriously, the ministry convened the emergency meeting at 3pm at the Ministry of Power, Energy and Mineral Resources, chaired by the Energy Division secretary, with leaders of the LPG Owners Association, operators and relevant officials.

During the meeting, the ongoing LPG situation was reviewed in detail, with priority given to restoring normalcy in the market.

The discussions revealed that the country currently has sufficient LPG stock, but local retailers have deliberately created an artificial shortage. While some challenges have emerged at the import stage—due to rising global prices, a shortage of vessels and sanctions imposed on certain cargo ships—officials said these factors do not justify the current market situation.

According to official data, LPG imports stood at 1,05,000tons in November 2025, which increased to 1,27,000tons in December. “Despite higher imports, there is no logical reason for a decline in LPG supply in the market,” the release said.

Leaders of the LPG Owners Association and importers told the meeting that some retailers withheld supplies in anticipation of a possible price hike by the Bangladesh Energy Regulatory Commission (BERC) this month. On Sunday, BERC increased the price of a 12-kg LPG cylinder from Tk1,253 to Tk1,306.

The ministry also said initiatives have already been taken to address several demands raised by the LPG association in consideration of promoting green fuel, including simplifying letters of credit and reducing VAT, through discussions with the relevant authorities.

In this context, it was decided that the LPG Operators Association of Bangladesh would issue a statement on Sunday regarding the artificial shortage created in the market.

To normalize the situation, the Cabinet Division and the Ministry of Home Affairs have been requested to instruct district and upazila administrations to conduct mobile court operations against irregularities. The ministry expressed hope that these measures would help bring LPG prices back to normal quickly.

 

Despite official assurances, consumers across Dhaka and its outskirts have been facing acute difficulties in obtaining LPG cylinders, often at exorbitant prices.

On the morning of Saturday, Aslam Mia went to a shop near his home in the Farmgate area after his LPG supply ran out. The retailer told him that cylinders were unavailable. After visiting several nearby shops and finding none in stock, he eventually managed to buy a 12-kg cylinder from another shop—but at a price of Tk2,300.

“I had no option but to buy it,” Aslam said.

Asked about the unusually high price, shopkeeper Azad claimed there was a severe shortage of LPG cylinders. “We are not getting cylinders from the dealers. I had only one cylinder left. I have been calling different places since morning, but I can’t find any more. Many retailers like us are facing the same problem,” he said.

A similar situation has been reported in Savar. Tamiya Sultana, a resident of the Palli Bidyut area, said her LPG cylinder ran out on Wednesday. A nearby retailer quoted Tk1,860 for a 12-kg cylinder—significantly higher than previous prices. Unable to find cylinders elsewhere, she bought it at that rate. When she asked again on Saturday, she was told the price had risen further to Tk2,000.

The 12-kg cylinder is the most commonly used for household cooking, and prices have been rising steadily over the past two weeks. Several retailers said that despite placing orders, they are not receiving adequate supplies from dealers, leaving them unable to meet customer demand.

Retailers, distributors blame supply disruption

Expressing concern over the situation, Selim Khan, president of the LPG Cylinder Distributors Association, said most companies have halted supplies, with only a handful currently operating at 20–30% of demand.

“This has created a serious crisis,” he said.

Selim said LPG demand rises globally during winter, pushing prices up, and Bangladesh is also facing an import vessel shortage. A total of 29 vessels used for LPG transportation have come under US sanctions, reducing import capacity. However, he stressed that increasing retail prices before any official government announcement was unjustified.

Prices of larger cylinders have also surged. Mohammad Ibrahim, a resident of Mohammadpur’s Adabor area, said his family uses 36-kg cylinders due to their household size. He last bought one for Tk3,700, but the same cylinder was selling for Tk4,800 this week.

“Sudden price hikes have left us frustrated, but we have no option,” he said, adding that consumers are being forced to pay an extra Tk1,100 for an essential fuel.

Residents of Khilgaon, Dhanmondi, Basabo, Mirpur, Kalyanpur and Shahjahanpur reported going from shop to shop with money in hand, only to return empty-handed.

During a visit to Shukrabad Bhanga Bazar in Dhanmondi, several retailers were seen making phone calls to dealers. Nuruzzaman, an LPG retailer there, said he had no cylinders to sell.

“Several customers came to me since morning, but I had to turn them away because I have none,” he said, pointing to rows of empty cylinders outside his shop. “If we could buy cylinders at higher prices, we would sell them accordingly. But the real problem is that there are no cylinders at all. Such a severe crisis has never happened before.”

Two customers waiting nearby said they had come from Purba Rajabazar and Kalabagan after failing to find LPG in their own areas, only to be disappointed again.

BERC is expected to announce new LPG prices on Sunday or Monday. According to BERC and the LPG Operators of Bangladesh (LOAB), winter-driven global demand and the ongoing vessel crisis have pushed up import and transportation costs. Bangladesh usually imports 130,000–140,000 tonnes of LPG per month, but only around 90,000 tonnes were imported in December.

Since April 2021, BERC has been fixing LPG prices on a monthly basis. While complaints of overpricing have been common, officials say the current scale of disruption is unprecedented.

Last Thursday, BERC sent a letter to LOAB after receiving complaints that LPG was being sold above the fixed December price of Tk104.41 per kg, or Tk1,253 for a 12-kg cylinder. Under BERC regulations, no entity involved in storage, bottling, distribution or retail is allowed to sell LPG above the fixed rate.

BERC member (Gas) Md Mizanur Rahman said discussions were held last Thursday and further talks with the commission chairman are scheduled for Sunday.

“Prices are usually announced on the first or second day of the month. Due to holidays, this month’s price announcement was delayed,” he said, adding that authorities would also examine whether licensed operators were operating at full capacity.

Selling LPG above the government-fixed price is illegal, Rahman said, adding that deputy commissioners have been instructed to prevent illegal price hikes. He also said the suggestion to print government-fixed prices on cylinders would be discussed, noting that it could benefit consumers.

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