The LPG Operators Association of Bangladesh (LOAB) has instructed operators, distributors, dealers and retailers to sell liquefied petroleum gas (LPG) cylinders at prices set by the Bangladesh Energy Regulatory Commission (BERC), warning of legal action against those charging excessive prices or hoarding supplies.
LOAB president Mohammad Amirul Haque issued the directive in a notice on Thursday, saying the country’s LPG supply situation remained satisfactory and there was no justification for creating an artificial shortage.
According to LOAB data, Bangladesh imported about 156,000 tonnes of LPG in September, compared with around 158,000 tonnes in August. The association said the available supply was sufficient to meet domestic demand.
The directive comes amid reports of LPG being sold above government-set prices in several parts of the country.
According to The Business Standard, BERC had set the price of a 12.5kg LPG cylinder at Tk1,652 in September, while some retailers were reportedly charging between Tk2,000 and Tk2,200.
LOAB said LPG supply and pricing issues were discussed at a meeting with the Ministry of Power, Energy and Mineral Resources on 28 September. At a subsequent virtual meeting on 30 September, deputy commissioners were instructed to strengthen monitoring of the LPG market.
The association said it would cooperate with government authorities and law-enforcement agencies to maintain market stability and protect consumers.
Concerns over imported cargo
The latest directive follows concerns raised by market participants over the reported withholding of imported LPG cargo and the resulting pressure on market prices.
In a communication to the government and regulatory authorities, industry representatives said around 158,000 tonnes of LPG was imported in September, compared with approximately 157,000 tonnes in August, suggesting no significant fall in monthly imports.
They nevertheless called for an urgent investigation into reports that substantial quantities of imported cargo had been held by some market participants from around 22 September.
The communication named several companies, including Aygaz, Omera, Petromax, BM Energy and Jamuna, but did not establish that any of them had deliberately withheld LPG. The allegations require verification through official inventory and cargo-release records.
The market participants also pointed to an increase of about $64 per tonne in the October premium, raising concerns that LPG imported before the increase might have been held back and released after the higher premium took effect.
They urged the government to examine whether the recent price escalation was being driven by genuine supply and cost factors or by inventory holding, delayed cargo releases or other market practices.
The proposed investigation includes checking importer-wise cargo arrivals, discharge dates, storage levels, inventory positions and actual market-release dates from 22 September onwards.
The market participants also called for an assessment of how much cargo imported before the October premium increase remained unreleased after the adjustment, and whether inventory levels were consistent with normal commercial requirements and domestic demand.
They stressed that the allegations should be independently verified through official data rather than treated as established wrongdoing.
The industry has urged the authorities to monitor LPG imports, inventories and market releases on a daily basis until prices stabilise, and to take corrective action if any practice is found to have restricted normal supply.