United News of Bangladesh

The Energy and Mineral Resources Division has urged the National Board of Revenue (NBR) to revise the existing VAT and tax structure on liquefied petroleum gas (LPG) imports and local production, aiming to stabilise supply and ease consumer pressure amid an ongoing market crunch. In its letter, sent in reference to recent decisions of the Advisory Council and a petition submitted by the LPG Operators Association of Bangladesh (LOAB), the Energy Division noted that around 98 per cent of the country’s LPG demand is met through imports by private sector operators, while the fuel is widely used for household cooking as well as in industrial activities. The letter pointed out that LPG prices typically rise during the winter season due to constrained global supply and increased domestic demand. Traders behind LPG price manipulation: Energy Adviser The situation has worsened as lower pipeline natural gas supply has pushed households and industries towards LPG, triggering a supply crunch that is disrupting daily life and drawing wide media attention. Referring to a memorandum issued by the Internal Resources Division on December 23, 2025, the Energy Division cited discussions held at the Advisory Council meeting on December 18, 2025. At that meeting, the council considered a proposal to withdraw the existing 15 per cent VAT exemption at the import stage and impose a 10 per cent VAT, while extending relief at other stages of the supply chain. The proposal also includes retaining the 7.5 per cent VAT at the local production stage, alongside exemptions from VAT at the business or trading stage and exemption from advance income tax. According to the Advisory Council, such a restructuring could help rationalise the overall tax burden on LPG and contribute to price stability. LPG crisis artificial, stern action to be taken: Ministry The council, however, stressed that any revision must be supported by a detailed analysis of its impact on consumers. The meeting minutes recorded that it is essential to assess the extent to which LPG purchase costs at the consumer level would fall if the proposed measures are implemented. To ensure this, the Advisory Council directed the Energy and Mineral Resources Division, the Ministry of Commerce and the Internal Resources Division to carry out a coordinated review and resubmit the proposal to the council with a clear assessment of consumer price implications. The Energy Division also informed the NBR that the issue had been discussed in a meeting with leaders of the LPG Operators Association of Bangladesh (LOAB). While the division expressed agreement with the Advisory Council’s broader approach, LOAB representatives reiterated their demand for zero per cent VAT at the import stage, opposing the proposed 10 per cent rate. Despite this difference, official records indicate that LOAB had broadly aligned with the Advisory Council’s deliberations, though disagreements remain over the specific VAT rate at the import level. The Energy Division said that policy support through a rationalised VAT and tax structure is crucial to maintaining normal LPG supply, particularly at a time when pipeline gas availability remains limited. LPG prices for Jan up but BERC admits lack of control over retailers It urged the NBR to take necessary steps in line with the Advisory Council’s guidance, taking into account the prevailing market situation and the need to protect consumers from further price shocks. LP Gas Traders Cooperative Society announced an indefinite countrywide strike from Thursday in the marketing and supply of the fuel, demanding higher distribution and retail charges.

Bangladesh’s liquefied petroleum gas (LPG) operators are likely to get one-stop service (OSS) in receiving different licenses from various agencies which will ultimately play a vital role in reducing their operational costs. According to official sources, the Energy and Mineral Resources Division will initiate a move for introducing such OSS as part of ease of doing business ethics to promote and smoothen the growing business in the LPG sector. "We will introduce the OSS like the one in the Bangladesh Investment Development Authority (BIDA) system to bring all the services under one umbrella,” said Anisur Rahman, senior secretary of the Energy and Mineral Resources Division. Also read: Introduce tracking system for LPG, CNG cylinders: Nasrul Hamid He said this OSS will be introduced within six months. “If necessary, we’ll place the issue at the top level of the government.” At present, the LPG operators have to take permission from various administrative and licensing bodies, including Bangladesh Energy Regulatory Commission (BERC). In some cases, the operators have to move up to 21 offices from a district-level administration to ministry-level office, said Jakaria Jalal, head of marketing of Bashundhara LPG, a leading operator. Read Private companies’ 12kg LPG price re-fixed at Tk 906 Industry insiders and consumers right groups said multiple regulators in the energy sector have made the services costlier for both the operators and the consumers, casting a big impact on the tariff, especially in the LPG and CNG businesses. “Consumers have to bear the brunt of huge amounts paid in fees annually by the business operators,” said an energy expert. President of LPG Operators of Bangladesh (LOAB) Azam J Chowdhury at a recent seminar said any bulk liquefied petroleum gas (LPG) business operator has to pay annually about Tk 13.5 million (1.35 crore) in total to 13 regulatory bodies to obtain licenses or to renew them for business. Also read: LPG distribution launched by UN partners in Cox’s Bazar The licensing bodies and the amount of their fees are Bangladesh Energy Regulatory Commission (BERC) Tk 35,65,000, Bangladesh Petroleum Corporation (BPC) (proposed) Tk 25,00,000, Bangladesh Investment Development Authority (BIDA) Tk 40,000, Department of Environment (DoE) Tk 205,000, Bangladesh Standards and Testing Institution (BSTI) Tk 12,04,158, Department of Explosives Tk 116,000, Bangladesh Fire Service and Civil Defense (BFSCD) Tk 120,000, Bangladesh Inland Water Transport Authority (BIWTA) Tk 25,00,000, and city corporation/local government body Tk 93,760. The other bodies and their fees include Department of Inspection of Factories and Establishment (DIFE) Tk 320,000, Office of the Chief Controller of Imports and Exports (CCI and E) Tk 61,000, Dhaka Chamber of Commerce and Industry (DCCI) Tk 10,350 and Registrar of Joint Stock Companies and Firms (RJSC and F) Tk 27,60,000 (assuming an authorised capital Tk 3 billion or 300 crore). During a public hearing recently held by the BERC, officials of large six private LPG companies also raised the issues and demanded a single regulatory authority to monitor their business and introduction of a one-stop service at the prime regulator's office. Read LPG operators to get services under one roof soon Hasin Pervez, a leader of the Bangladesh CNG Filling Stations and Conversion Workshop Owners Association, brought a similar allegation saying that they have to pay fees to 22 bodies to take licenses for LPG and CNG business. "The most bothersome part, in this case, is that there’s no serial to maintain in seeking licenses or permission from among the bodies like deputy commissioner (DC) office, BPC, or any other authority," he said. Once anybody applies to the DC office, its officials ask the applicant to take licenses from other agencies first and then apply, he added. Read Omera LPG introduces home delivery services in lockdown Hasin Pervez noted that when applications are filed to other authorities, they direct to bring the DC Office's permission first and then apply to them. Echoing the allegation, Prof Shamsul Alam, an adviser to the Consumers Association of Bangladesh (CAB), said the consumer rights body will also prefer a single regulator in the energy sector. "We're of the same opinion that multiple regulatory bodies only create complications in business and enhance costs which cast an impact on the energy tariff, and finally consumers have to pay the price," he said. Read LPG terminal project at Matarbari to get consultant Backing their views, former member of the BERC Mizanur Rahman said there should be a single and prime regulatory authority with one stop service facilities that will coordinate with other government agencies. He said the BERC has already simplified some of the processes in applying for a license for energy business by reducing the number of required obligatory documents. "But still there’s a scope for doing much more to further ease doing business in the energy sector," he told UNB. Read BPC’s ballooning operations call for augmented manpower  He also suggested fixing the fees rationally so that it does not affect the consumers. BERC Member (Gas) Maqbul-E-Elahi Chowdhury said they have already prepared a draft to reduce the annual license fees for different businesses in the energy sector.

Finally, Bangladesh Petroleum Corporation (BPC) has moved to appoint a consultant for its proposed LPG terminal project at under-construction Matarbari Deep Sea Port.

Azam J Chowdhury and Shayan F Rahman have been re-elected President and Vice President of the LPG Operators Association of Bangladesh (LOAB) for the next two years.