LPG Prices Soar as Bangladesh's Gas Shortage Worsens

The price of liquefied petroleum gas (LPG) in Bangladesh has increased by Tk 252 to Tk 1,837 for a 12-kilogram cylinder after the Bangladesh Energy Regulatory Commission (BERC) announced a fresh hike on Sunday.

However, consumers are already facing higher prices due to shortages across the country. In areas where gas is available, 12-kg cylinders are being sold for Tk 2,200 to Tk 2,500, far above the official price.

The high demand for LPG is attributed to a severe shortfall in national pipeline natural gas, which has forced thousands of households and small industries to shift to bottled gas. According to Petrobangla, the country's current domestic extraction and LNG regasification deliver only around 2,600 million cubic feet per day (MMCFD), against a nationwide demand of nearly 4,000 MMCFD.

Private importers are also facing challenges due to mounting international headwinds. The global shipping and freight surge has driven ocean freight rates to record highs, with actual international shipping costs surging to $400 per tonne from the BERC-calculated benchmark of $160 per tonne.