Bangladesh Petroleum Corporation (BPC) has sought government approval to import liquefied petroleum gas (LPG) in an effort to stabilise the country’s volatile LPG market amid supply shortages and abnormal price hikes.
The move comes as media reports and consumer complaints indicate an artificial crisis and price instability in the domestic LPG market, forcing consumers to purchase the fuel at unusually high rates.
Officials said the issue was discussed at a virtual meeting held on January 7, 2026, chaired by the Secretary of the Energy and Mineral Resources Division. Following the meeting, BPC decided to place a formal proposal before the division seeking policy guidance and approval for LPG import and subsequent supply to private operators.
At present, LPG import and supply in Bangladesh are entirely managed by the private sector, with no direct government or BPC involvement. As a result, the government has limited capacity to intervene promptly when market disruptions or supply shortfalls occur.
BPC officials noted that LPG produced as a by-product at Eastern Refinery Limited (ERL) from imported crude oil meets only about 1.33 percent of the country’s total LPG demand.
Although BPC does not currently have its own LPG storage or unloading infrastructure—such as jetty-based pipelines, transmitters or storage tanks—officials said the corporation could utilise existing facilities operated by private LPG companies.
These operators unload LPG through lighter vessels in deep-sea areas like Moheshkhali before storing it at their own terminals.
BPC may follow a similar arrangement by using lightering vessels operated by interested private companies to unload and distribute imported LPG, officials said.
The corporation also plans to hold discussions with the LPG Operators Association of Bangladesh (LOAB) to prepare a list of interested operators, determine import volumes, finalise payment mechanisms, and set procedures for unloading and distribution.
BPC officials pointed out that the corporation has past experience in arranging emergency fuel imports through government-to-government (G-to-G) suppliers during sudden demand surges or supply disruptions.
They said a similar approach could be adopted for LPG imports by seeking quotations from enlisted G-to-G suppliers, many of whom are large refiners capable of producing and supplying LPG.
In addition, alternative sources in the international market may also be explored to ensure competitive pricing, officials added.BPC said the initiative aims to curb artificial shortages, protect consumer interests, and ensure a competitive and stable LPG market.
The corporation has formally requested policy approval and necessary directives from the Energy and Mineral Resources Division to proceed with LPG imports and supply to private operators.