Bangladesh LPG Prices Soar Amid Supply Shortages and Market Manipulation
Consumers in Bangladesh are facing increased financial strain as the price of Liquefied Petroleum Gas (LPG) continues to rise, compounded by persistent supply shortages. The Bangladesh Energy Regulatory Commission (BERC) recently announced a price hike, raising the cost of a 12-kilogram cylinder by Tk 252 to Tk 1,837. However, on the ground, prices are much higher, ranging from Tk 2,200 to Tk 2,600, with many retail outlets running out of stock.
The government has taken steps to address the crisis, with high-level meetings involving Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood Tuku and Commerce Minister Khandaker Abdul Muktadir. The Energy Minister also directed Deputy Commissioners to investigate potential artificial shortages and take legal action against price gougers. Despite these efforts, the supply strain persists due to a severe shortfall in national pipeline natural gas, forcing many households and businesses to rely on bottled LPG.
Global factors are exacerbating the situation, with international shipping costs surging due to geopolitical conflicts in the Middle East. Importers report that actual shipping costs have risen to $400 per tonne, far above the $160 per tonne benchmark used by BERC. This has led to reduced import volumes and further supply constraints. Additionally, there is internal friction within the LPG sector, with some operators alleging that major importers are deliberately delaying the release of imported LPG to manipulate prices.
Experts have criticized BERC's regulatory failure, with Consumers Association of Bangladesh (CAB) Energy Adviser Prof. M. Shamsul Alam calling the price hike a validation of illegal market manipulation. Energy expert Dr. Ijaz Hossain highlighted policy oversights, emphasizing the need for state-owned buffer stocks and a price stabilization fund to protect consumers from volatile global markets.