Bangladesh has ordered legal action against those accused of engineering an artificial liquefied petroleum gas (LPG) shortage after retail prices surged despite what the government says are adequate supplies.
The Ministry of Power, Energy and Mineral Resources said it had detected abnormally high prices at the retail level and convened an emergency meeting at the Energy and Mineral Resources Division (EMRD) with leaders of the LPG Owners’ Association and major operators. The meeting was chaired by EMRD secretary Mohammad Saiful Islam.
After reviewing the situation, officials concluded that the country has sufficient LPG reserves and that the disruption has largely been caused by retailers allegedly withholding supplies in anticipation of a price rise. While global price increases, shipping constraints and sanctions on some cargo vessels have created limited pressure at the import stage, the ministry said these factors do not justify the current retail squeeze.
Government data showed LPG imports rose sharply, from 105,000 metric tonnes in November 2025 to 127,000 metric tonnes in December 2025, undermining claims of a genuine supply shortfall.
Retailers began restricting sales ahead of a tariff adjustment by the Bangladesh Energy Regulatory Commission (BERC), according to LPG association leaders and importers. On Sunday, BERC raised the price of a standard LPG cylinder to Tk 1,306 from Tk 1,253.
The ministry said it has also opened talks with relevant authorities to address industry demands aimed at promoting LPG as a cleaner fuel, including easing letter-of-credit requirements and reducing value-added tax.
As part of the response, the LPG Operators Association of Bangladesh (LOAB) is expected to issue a statement condemning the alleged artificial shortage. The government has also asked the Cabinet Division and the Ministry of Home Affairs to instruct district and sub-district administrations to conduct mobile court operations against malpractice.
Speaking after the meeting, EMRD spokesperson Monir Hossain Chowdhury said some major operators, including Bashundhara Group, Orion Group, United Group’s United Aygaz LPG Ltd, S Alam Group and BEXIMCO Group, had significantly reduced imports over the year. “Despite this, the government has not found any supply shortage, as LPG imports increased from 105,000 tonnes in November to 127,000 tonnes in December,” he said.
Chowdhury added that some operators had sought permission to raise annual import volumes to 300,000 tonnes despite failing to supply even 100,000 tonnes currently. Operators, however, blamed retailers for the tariff hike-driven price volatility and the artificial cylinder shortage.
During the meeting, operators also demanded a zero-duty regime on raw material imports and production inputs. The National Board of Revenue proposed instead to cut import-level duties on raw materials to 10 per cent from 15 per cent.
In a separate statement, LOAB secretary general Mohammed Ahsanul Jabbar said consumers had been alarmed by the sudden rise in LPG prices. He acknowledged that higher freight charges, increased LPG consumption in Europe and other factors had disrupted the supply chain, but stressed that overall stock levels remained satisfactory.
The meeting reaffirmed that there would be no ceiling on LPG imports, Jabbar said. Despite this, some retailers were selling cylinders above the officially approved price, causing hardship for consumers and confusion in the market.
“We urge the government to take immediate and effective action against retailers charging excessive prices in violation of regulations,” he said. “Strict monitoring and enforcement are essential to protect consumers and ensure transparency and stability in the LPG sector.”