LPG availability has tightened across parts of Dhaka, with a 12kg cylinder selling for up to Tk2,500 despite claims from LPG operators that there is no shortage in the market.
The Bangladesh Energy Regulatory Commission (BERC) has set the retail price of a 12kg cylinder at Tk1,585 for September. However, visits to several Dhaka markets found cylinders being sold for Tk2,300 to Tk2,500, while some shops were closed and traders were offering home delivery at higher prices.
On September 30, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood directed deputy commissioners to investigate whether artificial shortages were being created and whether consumers were being charged above the BERC-set price.
The minister asked the DCs to submit reports with evidence and warned that action would be taken against those creating artificial shortages or selling LPG above the regulated price. He also said supplies would be increased in areas where shortages were found.
However, prices had not come down in the markets visited after the government’s warning.
Shops mostly closed, even Tk2,500 cannot get a cylinder
At Khilgaon, a retailer named Md Mintu quoted Tk2,500 for a 12kg cylinder. Asked why the price was so high, the seller simply replied: “There is no gas supply. We have only a few bottles of gas left.”
A large LPG shop in Basabo was found partly closed. In Mugda, another shop was shuttered and locked from inside.
Contacted by phone, the trader said: “The shop is closed now, there is no gas supply. Only 2 bottles left. We can deliver it to your home for Tk2,500.”
Similar complaints have emerged from other parts of Dhaka.
Nasima Begum of Rampura, who uses LPG because of the long-standing shortage of piped gas, said she had never been able to buy a cylinder at the government-fixed price.
“This month too, I had to pay around Tk800 more,” she said.
A retailer in Khilgaon said he sold 12kg cylinders for Tk1,850-1,900 from September 21 to 23. The price had since risen to Tk2,500.
Retailers blamed the higher prices on supply from distributors, saying they were receiving fewer cylinders than they ordered and were having to pay more for the stock they obtained.
Operators deny shortage
However, LPG operators claim that there is no overall shortage.
LOAB Secretary Ahsanul Jobbar said operators import LPG and supply it to dealers, who then distribute it through retailers.
“There is no shortage at that level. Dealers are receiving LPG but consumers are not getting it. Ensuring that supply reaches consumers is the government’s responsibility,” he told Dhaka Tribune.
“According to data as far as we know, we have imported 157,760 tons of LPG in August and approximately 155,500 tons during September. So, there is no gas shortage. But the shipping charge has risen sharply, that’s true.”
BERC Chairman Jalal Ahmed said the commission was aware of complaints about shortages and higher prices but said the import figures did not yet show a major decline.
He also acknowledged that higher freight costs and domestic factors could be contributing to the supply problem.
LPG prices rise in multiple rounds
However, industry representatives have pointed to higher international prices, freight costs and disruptions to shipping routes, saying these have increased the cost of bringing LPG into the country.
They have blamed the rise in global LPG prices, higher freight costs and disruptions around the Strait of Hormuz and the Red Sea. Some have also warned that import volumes could fall further if BERC does not revise the premium allowed for LPG imports.
The regulated price of a 12kg LPG cylinder rose from Tk1,306 in January to Tk1,940 in April before falling to Tk1,528 in July. It then rose to Tk1,598 in August and was cut by Tk13 to Tk1,585 in September.
The current price is still Tk279 higher than in January.
The widening gap between the regulated price and the retail market price has left consumers bearing a much higher cost, while importers, distributors and retailers continue to point fingers at different parts of the supply chain.
