BB eases LPG import rules amid deepening gas crisis

Staff Reporter :

Bangladesh Bank (BB) has relaxed regulations on liquefied petroleum gas (LPG) imports, allowing importers to use suppliers’ or buyers’ credit to ease financing pressure as the country faces a worsening gas crisis.

In a circular issued on Monday, the central bank said LPG imports will now be eligible for usance terms of up to 270 days. The decision comes as households and restaurants struggle to cook daily meals due to disruptions in both pipeline gas supplies and bottled LPG availability.

Amid limited supply, LPG prices have surged by Tk 350 to Tk 900 depending on cylinder size, with many cylinders being sold above government-fixed rates, putting pressure on both households and businesses.

BB noted that LPG is imported in bulk and later bottled for domestic use, a process that requires additional time for storage, bottling, and other operational activities. In view of this, the central bank said LPG should be treated as an industrial raw material for trade credit purposes.

Under existing foreign exchange regulations, imports of industrial raw materials are allowed under suppliers’ or buyers’ credit for a usance period of up to 270 days, or the cash conversion cycle, whichever is shorter.

Besides supplier credit, BB advised banks to arrange buyers’ credit facilities from overseas banks and financial institutions. Banks may also facilitate bill discounting through offshore banking units of scheduled banks in Bangladesh, subject to prevailing foreign exchange regulations and prudential credit norms.

The measure is expected to provide greater flexibility to LPG importers, helping them manage cash flows more effectively amid rising import costs and tight liquidity conditions.