Businesses increase LPG imports despite crisis, NBR data reveals

The government is struggling to import natural gas and fuel oil in line with demand amid the war in the Middle East. Although an initiative was taken three months ago, it has not been able to import a single shipment of liquefied petroleum gas (LPG).

However, during the crisis, local businesses have imported a large volume of LPG.

According to data from the National Board of Revenue (NBR), LPG imports in March reached 211,000 tonnes, which is 38 per cent higher than the same period last year. All of this LPG was imported by the private sector.

While the increase in imports has eased concerns over the supply of this essential cooking fuel, consumers now face uncertainty over prices. This is because Saudi Arabia’s state-owned oil company Aramco has raised LPG prices for April by 44 per cent in the global market, while shipping costs have more than doubled.

The Bangladesh Energy Regulatory Commission (BERC) sets consumer-level LPG prices in the country based on Saudi Aramco’s pricing. On Thursday, BERC fixed new LPG prices for April, raising the price by Tk 32.30 per kg for private-sector LPG. As a result, the price of the widely used 12 kg LPG cylinder has increased to Tk 1,728, up from Tk 1,341 last month—an increase of Tk 387.

BERC said LPG cylinders of various sizes are available in the market. The price per kg is now Tk 144.04, and cylinder prices will be determined accordingly.

The agency sets LPG prices every month. However, LPG is not being sold at the fixed price in the market. The 12 kg cylinder is the most commonly used for household purposes, and there are allegations that retailers are charging Tk 300 to Tk 400 extra per cylinder.

During the interim government period, LPG imports in November fell by 44 per cent compared to the same time the previous year. Imports did not increase in December and January either, leading to a severe shortage in January. Later, after the government took various measures to ease imports for businesses, the situation began to improve from February.

According to NBR data, LPG imports reached 171,000 tonnes in February, up 21 per cent from the same period last year. In March, it increased further to 211,000 tonnes, 40,000 tonnes more than in February.

Despite the Middle East conflict, at least 10 companies led LPG imports in March, including Meghna Fresh LPG, United Aigaz, Jamuna Spacetech Joint Venture, and Omera Petroleum.

Among them, Meghna Group of Industries (MGI) alone imported about 37,000 tonnes of LPG. Its chairman Mostafa Kamal told Prothom Alo, “Since the crisis in the Middle East began, we have taken initiatives to source LPG from alternative markets. We have increased imports from countries such as China, Vietnam, and Malaysia. This has helped maintain normal supply. In the current global situation, ensuring supply, not price, was our main goal.”

Businesses involved in LPG imports said that although supply remained normal in March, the outlook for April largely depends on the situation of the war in the Middle East, as nearly half of the country’s LPG imports come from that region.

Amirul Haque, president of the LPG Operators Association of Bangladesh (LOAB), said that over the past two months, private sector entrepreneurs have increased LPG supply by importing from diversified sources.

Although there are concerns about imports in April, we are making our best efforts to ensure steady supply in the market, he added.

There has been no progress in LPG imports under the government sector. Although an initiative was taken in January to import LPG at the government level, the Bangladesh Petroleum Corporation (BPC) is yet to sign any agreement with suppliers.

BPC invited tenders from nine companies in eight countries, but most did not respond. Those that did submit proposals quoted prices higher than BPC’s expectations. While BPC had estimated a premium of around $105 per tonne, proposals ranged between $150 and $190.

BPC Chairman Md Rezanur Rahman told Prothom Alo that no proposal meeting the desired premium had been received, and a fresh tender would be invited for LPG imports.