As the demand for liquefied petroleum gas (LPG) in the country increases by more than 10 per cent every year, the supply to the market must be increased accordingly to keep pace with this growing demand. Compared to 2023, imports rose by nearly 336,000 tonnes in 2024.
However, compared to the previous year, imports last year decreased by nearly 150,000 tonnes. The drop in imports was especially high in the last three months of the year, creating a severe shortage of LPG in the market.
Over the past three years, Bangladesh Energy Regulatory Commission (BERC) has presented this trend in LPG imports. According to responsible sources at the commission, LPG imports in 2023 were 1,275,000 tonnes. In 2024, it rose to 1,610,000 tonnes. Last year, only 1,465,000 tonnes were imported.
Although imports were supposed to increase, they instead fell by 10 per cent. As a result, whatever stock was expected to remain at the end of the year was already sold in the market. Despite this, market demand is not being met. Consumers are unable to obtain cylinders even at double the price.
BERC says that 52 companies hold licenses to operate in the LPG business. Among them, 32 companies have their own plants for filling cylinders. Twenty-three companies have the capacity to import. Last year, 17 companies imported LPG in some months, while only eight companies imported every month. Some import at the start of the year but stop later.
A responsible BERC official told Prothom Alo that this LPG crisis could have been anticipated earlier. The government has monthly data showing a decline in imports. Therefore, companies that regularly import should have been granted permission to increase imports. Had permission been given on time, the current shortage would not have occurred.
BERC also said that the Energy and Mineral Resources Division has already taken initiatives to increase LPG imports. Priority is being given for opening Letters of Credit (LC). Import permissions have been increased, and businesses have started the import process. If imports rise, the supply shortage will ease.
Currently, the LPG shortage is a supply-related crisis, says BERC chairman Jalal Ahmed. In a roundtable on the LPG market last Thursday, he said that until November, 170 ships faced US sanctions. In December, another 29 ships were affected. Supplies from Iran have stopped. Large buyers like China are now purchasing from the global LPG market, making it increasingly difficult to procure LPG.
However, Amirul Haque, president of LPG Operators of Bangladesh (LOAB), blames the government for the ongoing LPG crisis. Speaking at the same roundtable, he said that five LOAB member companies had requested permission to increase imports a year ago. A year later, the ministry replied that this is not approved by policy. Another request was sent in August. Permission for new plants was also not granted.
LPG at higher prices, cylinders unavailable
Even after two weeks, the LPG crisis in Dhaka has not eased. Many people are using electric stoves due to the lack of gas. Tamanna Akhtar, a resident of Mohammadpur, said she managed to find a cylinder after looking for LPG as at several shops. Although its government-set price is Tk 1,306, she had to pay Tk 2,300.
Selim Khan, president of the LPG Business Cooperative Society Limited, told Prothom Alo that the situation has not improved. Around 70 per cent of cylinders remain empty. Supply may increase slightly soon.
In Chattogram, cylinders are being sold at higher prices wherever available. A certain Arafatul Islam from Agrabad said he bought a 12-kg cylinder for 2,000 taka. However, in most areas, cylinders are still unavailable. For more than two weeks, supply has not normalised. According to traders, distributors are not providing cylinders as per the demand. Whatever cylinders arrive during the day are sold within an hour.
Mohammad Yusuf, manager of Hosain Manzil in Askar Dighir Par (east), Chittagong, said their building has 24 flats. There is no pipeline gas, so everyone depends on LPG. They need three to four cylinders daily. Even at higher prices, cylinders are unavailable.
Muhammad Ali Azam, owner of Messrs Mohammadia Trading near Gate No. 2, said that about 200 customers visit his shop daily, including people from nearby areas. In the past week, he received only 15 cylinders.
Even when cylinders are available in limited quantity, residents of Barishal are paying Tk 300–350 extra per cylinder. Md Al Amin, a resident of New Market area, said a cylinder costing Tk 1,306 is not even available for Tk 1,600. Retailer Monir Hossain of College Avenue said he buys at 1,400 taka but has to sell at 1,550 taka. Supply from many companies has been absent for the past month.
Imran Ali, owner of Rajshahi Gas Service, a retail LPG vendor in Sadhu Mor, Rajshahi, said last Thursday that he visited various distributors’ shops with an empty cylinder van but did not find a single cylinder.
Mohan Ali of Ramchandrapur, Rajshahi, bought a new kerosene stove due to the unavailability of gas. Samia Shahrin, a student of Rajshahi New Govt. Degree College, said she purchased an electric stove as an alternative.