LPG scarcity deepens Dhaka’s woes
Dhaka residents are struggling to find liquefied petroleum gas (LPG) cylinders as supplies have tightened across the capital, with consumers in some areas paying up to Tk 2,500 for a 12-kg cylinder despite a government-fixed price of Tk 1,837.
The shortage has left many households and businesses facing higher cooking-fuel costs, while some retailers are selling cylinders discreetly amid fears of raids and mobile courts by the administration.
Retailers said the latest price hike by the Bangladesh Energy Regulatory Commission (BERC) has further unsettled the market, with LPG suppliers charging them around Tk 2,200 for a 12-kg cylinder.
New stocks at the revised rate are expected to reach the market from Tuesday, potentially pushing the retail price to Tk 2,300-Tk 2,400 from Wednesday.
In some major areas of the capital, LPG cylinders are reportedly difficult to find. Retailers in parts of central Dhaka, however, are selling 12-kg cylinders for as much as Tk 2,500, highlighting the widening gap between official prices and market rates.
Sector insiders said the disparity has persisted for several years because of a mismatch between actual demand and available supply.
They estimated national LPG demand at around 1.4-1.5 million metric tonnes a year, while constraints in the supply chain have allowed market prices to remain well above regulatory rates.
Retailers said primary LPG distribution companies are already invoicing dealers at Tk 2,100-Tk 2,200 per 12-kg cylinder, making it difficult for retailers to sell at the official rate.
“Though the government fixed the price at Tk 1,837, the bottling companies themselves are charging us up to Tk 2,200,” said an LPG supplier in the Boro Moghbazar area.
“Adding transport costs and labour charges, how is it possible to sell at the official rate? It inevitably reaches Tk 2,400 at the consumer level because the government fails to enforce rates at the company point,” he said.
Traders warned that fresh stocks reflecting the newly announced prices could enter the market by Tuesday, with consumers potentially paying Tk 2,400 for a 12-kg cylinder from Wednesday.
New BERC prices
For October, BERC raised the retail price of private LPG to Tk 153.06 per kg, including VAT, from Tk 132.08 in September.
As a result, prices of different cylinder sizes have also increased.
The 5.5-kg cylinder has been set at Tk 842, up from Tk 727; the 12.5-kg cylinder at Tk 1,913, up from Tk 1,652; the 15-kg cylinder at Tk 2,296; the 20-kg cylinder at Tk 3,061; and the 45-kg commercial cylinder at Tk 6,888.
The price of autogas, widely used by motor vehicles, has also risen by Tk 11.53 per litre to Tk 84.62 from Tk 73.09. Reticulated LPG in liquid form has been set at Tk 149.31 per kg.
The price of the state-owned LP Gas Limited’s 12.5-kg cylinder remains unchanged at Tk 776.93. However, its limited market share means the lower price provides little relief to most consumers.
BERC attributed the latest increase to higher international contract prices. Saudi Aramco’s average Contract Price (Saudi CP) for propane and butane, based on a 35:65 ratio, rose to $712.50 per metric tonne in October from $647.75 in September.
Supply chain under strain
The persistent gap between regulated prices and actual market rates has raised concerns about the effectiveness of price controls and the LPG distribution system.
BERC has instructed storage and bottling licensees to issue proper VAT invoices and strictly follow the post-bottling price ceilings.
Business representatives, however, have urged the government to make a realistic assessment of national LPG demand and streamline import channels to improve supply and reduce volatility in the energy market.
They said addressing supply constraints at the source, rather than relying solely on retail-level enforcement, would be essential to bringing LPG prices closer to the official rates and easing the burden on consumers.
