BPC interested in importing LPG to tackle crisis

The Bangladesh Petroleum Corporation (BPC) wants to import liquefied petroleum gas (LPG) to ease the ongoing crisis.

The state-owned entity has sent a letter to the Ministry of Power, Energy and Mineral Resources seeking permission. The letter states that as the entire LPG market is dependent on the private sector, the government’s scope for intervention during a crisis is limited.

BPC chairman Md Amin Ul Ahsan sent the letter to the Secretary of the Energy and Mineral Resources Division on 10 January, seeking approval to import LPG.

The letter notes that in recent times the country’s LPG market has experienced supply shortages and price hikes, with LPG cylinders unavailable at the government-set prices in some areas. If an artificial crisis emerges in the market, the government currently has no immediate tool to stabilise it.

In this context, if policy approval is granted, BPC plans to import LPG on a government-to-government (G2G) basis and quickly supply it to the market through private operators, it added.

When asked, BPC chairman Md Amin Ul Ahsan told Prothom Alo, “The LPG market is effectively under private control. If the government can import some LPG, it will help restore balance in the market. That’s why we’ve sought permission.”

He added that many private companies are unable to import LPG due to various complications. BPC wants to import LPG and supply it to these companies, which would help resolve the crisis.

However, experts say that supplying LPG to the private sector would not change the situation. The Bangladesh Energy Regulatory Commission (BERC) sets LPG prices monthly for the private sector, but LPG is not sold at those prices in the market. Therefore, unless BPC imports LPG and sells it directly to consumers, the impact on the market would be limited.

The government had previously taken initiatives to import LPG, but those were not implemented.

On the issue, adviser to the Ministry of Power, Energy and Mineral Resources Muhammad Fouzul Kabir Khan said, “At present, LPG is not imported by the government. However, we are assessing the feasibility of government-to-government imports. If imports are possible, market balance will be restored and the crisis will be resolved. Consumers will not be held hostage in the future. For now, however, the government will only import LPG and will not be involved in storage, bottling, or distribution.”

BPC’s letter states that it currently lacks the necessary infrastructure at its own level to import LPG. However, private operators unload LPG from large vessels to lighter ships in the deep-sea area near Kutubdia and then transport it to their terminals for storage and distribution. BPC could also import LPG using the same method by utilising the facilities of private operators for unloading and distribution.

The letter also proposes holding discussions with the LPG Operators Association of Bangladesh (LOAB) to determine the list of interested companies, import volumes, payment methods, and unloading and distribution processes.

LPG enters the market in Bangladesh through both government and private channels. On the government side, limited quantities of LPG are supplied by three BPC subsidiaries—Padma Oil, Meghna Petroleum, and Jamuna Oil Company. In the 2024–25 fiscal, government sales of LPG amounted to 19,000 tonnes.

In contrast, private companies supply the bulk of demand. According to LOAB and BPC sources, 23 companies in the country have LPG import capacity, though only five or six import on a large scale. Last year, approximately 1.85 million tonnes of LPG were imported.

In the private sector, the declared price of a 12-kg LPG cylinder is Tk 1,306, but cylinders are not sold at this price in the market. Currently, due to shortages and supply pressure, LPG cylinder prices have risen abnormally in Dhaka, Chattogram, and other districts.

According to state-owned LP Gas Limited and BPC data, annual LPG demand in Bangladesh is currently around 1.7 million tonnes. About 80 per cent of LPG consumption is for cooking, with the remaining 20 per cent used in industry and vehicles. LPG demand continues to grow every year.

A report by LP Gas Limited states that by 2030, annual LPG demand could exceed 3 million tonnes. Supply from government sources could reach a maximum of 50,000 tonnes, which is negligible compared to overall demand.

M Shamsul Alam, energy adviser to consumer rights organisation CAB, told Prothom Alo that successive governments have fully commercialised the LPG sector. Consumer-friendly decisions are needed. If necessary, the government should import LPG and increase supply, he said.