The government has ordered deputy commissioners (DCs) to investigate allegations that artificial shortages of liquefied petroleum gas (LPG) are being created to push up prices, despite government assurances that national supplies remain adequate.
Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud issued the directive during an online meeting with DCs at the Secretariat on Wednesday.
The minister said there was no overall shortage of LPG in Bangladesh, but reports had emerged from several areas of supply disruptions and sales at prices above those set by the Bangladesh Energy Regulatory Commission (BERC).
District administrators have been instructed to identify areas where supplies are falling short, determine the reasons for any disruption and establish whether artificial shortages are contributing to higher prices. They have also been asked to submit reports backed by evidence.
“Where there is no shortage in supply, why are reports of shortages emerging and why are consumers being charged higher prices?” the minister asked, according to officials familiar with the meeting.
Mr Mahmud said the government would review the reports before holding discussions with importers and other stakeholders to determine what action was required.
Additional supplies would be arranged for areas where genuine shortages were identified, he said.
The minister also warned that the government would take action against traders found to be creating artificial shortages or selling LPG above BERC-approved prices.
He urged district administrations to remain vigilant and closely monitor the LPG distribution network to ensure supplies reach consumers at regulated prices.
The government’s move comes amid higher international LPG prices, which have put pressure on Bangladesh’s domestic market. Importers have maintained that there is no major shortage of LPG, but consumers in several parts of the country have reported buying cylinders at significantly higher prices.
Reports suggest that the retail price of a 12kg LPG cylinder has exceeded Tk2,000 in some areas, well above the regulator’s official price.
The government’s investigation is intended to establish whether the price increases are being driven by genuine supply and import costs or by problems further down the distribution chain.