United News of Bangladesh

A serious shortage of liquefied petroleum gas (LPG) is disrupting kitchens and commercial eateries across the capital, forcing businesses and households to struggle with erratic supplies and higher costs. For nearly two decades, Abdullah Molla has run a mid-range hotel in the capital, serving affordable meals to office-goers, students and low-income workers. Over the past two weeks, however, he says keeping the business running has become a daily struggle. “Even after paying more, gas cylinders are not available. Some days we cannot serve our full menu. We are losing money and customers are leaving without eating,” Abdullah told UNB. Closing the kitchen is not an option but with no gas, many food items have already been dropped from the menu,he said . Small restaurants and roadside food vendors are facing the same crisis across the country. Kader, who runs a fast-food cart in a busy commercial area, said the rising price of LPG has pushed up his daily operating costs. Gas cylinder explosion after wedding kills eight in Islamabad “The price I used to buy gas at has increased sharply. If I raise food prices, customers get annoyed. Many walk away without buying anything,” he said. Homemakers Under  Pressure The crisis is not limited to businesses. In many urban neighbourhoods, LPG is now the only cooking fuel as new residential gas connections remain suspended. For thousands of families, daily cooking has become uncertain. Some households are being forced to switch to alternative fuels, which are often more expensive, time-consuming and inconvenient. “There has been no pipeline gas in our area for a long time. We depend entirely on LPG cylinders, but now even that has become chaotic,” said housewife Arha Moni. She alleged a huge gap between government-fixed prices and what retailers are charging. “What is the official price of a 12-kg cylinder, and what are shopkeepers charging? Now it costs Tk 2,500 to Tk 2,600. Is this business, or is it robbery?” she asked. Titas low pressure chokes gas supply across Dhaka; residents struggle She accused traders of ignoring official prices and creating artificial shortages. “Who gave them the right to empty ordinary people’s pockets through syndicates? Families are suffering badly. There is no gas in the stove, and buying a cylinder has become suffocating. Is there no one to see this?” she said. Consumers have blamed weak market monitoring for allowing such practices to continue and have urged authorities to act immediately to curb price manipulation and ensure sales at government-fixed rates. Import Dependence and Supply  Disruptions Businesses involved in LPG marketing  claim that the current crisis stems from uncertainty in the supply system and complications over price adjustments. They allege that despite the worsening situation, no clear directive or visible initiative has yet come from the government. The Ministry of Power, Energy and Mineral Resources on January 04 said there is no shortage of Liquefied Petroleum Gas (LPG) in the country and local administrations have been ordered to take action against those responsible for creating the artificial crisis. According to the ministry, LPG imports were 1.05 lakh metric tons in November 2025 and 1.27 lakh metric tons in December 2025. Despite the increase in imports, there is no logic for a supply shortage in the market, it added. Energy sector sources say Bangladesh’s annual LPG demand is now around 1.4 million metric tonnes, with monthly consumption exceeding 120,000 metric tonnes on average. Demand rises further during winter and festival seasons. Nearly 98 percent of the country’s LPG is imported, making the domestic market highly vulnerable to global price volatility, dollar shortages, LC opening complications and shipping delays. Marketing companies claim recent import disruptions have prevented the buildup of adequate reserves. Read more: How to Save Gas While Cooking at Home As a result, dealers in many areas are receiving far fewer cylinders than required, creating shortages at the retail level. Although the government-fixed price of a 12-kg cylinder remains unchanged, consumers say shortages have pushed market prices to Tk 1,800 to Tk 2,000 and even higher in many areas. Analysts say LPG demand could reach 2.5 million metric tonnes annually by 2030. Without expanding supply capacity, simplifying import procedures and strengthening market monitoring, the crisis could worsen further. A Ray of Relief? Amid growing pressure from traders and consumers, Bangladesh Bank has eased import rules for liquefied petroleum gas to reduce financing pressure on local importers. In a circular issued on Sunday, the central bank said LPG imports will now be eligible for usance terms of up to 270 days under suppliers’ or buyers’ credit. The move is expected to give importers greater flexibility in managing payments during the ongoing dollar crunch. However, industry insiders say the impact of the policy change may take time to be felt on the ground. Until supply stabilises and prices come down, hotel owners, food vendors and homemakers fear the crisis will continue to disrupt daily life and livelihoods. Energy and Mineral Resources Division's Joint Secretary AKM Fazlul Hoque said around six million households in Bangladesh currently use LPG, making it an essential commodity. “The government is in the process of updating the LPG policy, which will include guidelines aimed at addressing existing challenges in the sector,” Fazlul added. Chairman of the  Bangladesh Energy Regulatory Commission (BERC) Jalal Ahmed on Thursday expressed optimism that the country would not face a shortage of liquefied petroleum gas (LPG) during the upcoming Ramadan, citing an expected increase in imports. LP gas traders threaten nationwide supply suspension “Those who brought in additional imports were not obstructed. Around 150,000 tonnes of LPG are expected to arrive in January. We hope there will be no problem during Ramadan,” Jalal said at a roundtable discussion titled ‘Challenges of Regulating the LPG Market’, organised by the LPG

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.

The Ministry of Power, Energy and Mineral Resources on Sunday (January 04, 2026) said there is no shortage of Liquefied Petroleum Gas (LPG) in the country and local administrations have been ordered to take action against those responsible for creating the artificial crisis. “The district and upazila administrations have been asked to operate mobile courts to normalise the situation,” the ministry said in a statement.  It expressed optimism that LPG prices will be stabilised soon through these measures. Read more: LPG prices for Jan up but BERC admits lack of control over retailers Considering the high retail LPG prices, the Energy Adviser held an emergency meeting with officials to review the situation. Another meeting was held at the ministry with leaders of the LPG Owners Association and LPG operators, chaired by the energy secretary. During the meeting, LPG association leaders and importers said that retailers have artificially created the crisis taking advantage of the Bangladesh Energy Regulatory Commission’s recent price revision. According to the ministry, LPG imports were 1.05 lakh metric tons in November 2025 and 1.27 lakh metric tons in December 2025. Despite the increase in imports, there is no logic for a supply shortage in the market, it added. The ministry also said the government has already taken steps to address some demands raised by the association. It was decided in the meeting that the LPG Operators Association will issue a statement regarding the artificial crisis. Read more: CAB seeks govt action to rein in LPG, sugar, edible oil prices

In an update from the Bangladesh Energy Regulatory Commission (BERC), the price of liquefied petroleum gas (LPG) has been adjusted upwards by Tk 0.66, setting the new rate at Tk 123.52 per kg, up from the previous Tk 122.86. This price change is effective from 6 pm on Sunday (March 03, 2024), indicating a slight increase in household and commercial expenses. BERC, at a press briefing today, detailed the adjustment, noting that the price for a standard 12 kg LPG cylinder will now be Tk 1482, inclusive of VAT, marking an increase from the previous Tk 1474. This adjustment follows a rational scale across various LPG cylinder sizes, ranging from 5.5 kg to 45 kg, addressing the need for a proportional price revision across different consumer segments. Read more: Gas shortage hits many areas in capital city Furthermore, the price for “auto gas,” the LPG variant used in motor vehicles, has also seen a revision, now priced at Tk 68.05 per litre, including VAT, a slight increase from Tk 67.68. This adjustment reflects the broader impact of LPG price changes on transportation and related costs. Notably, LPG prices marketed by the state-owned LP Gas Company will remain unchanged. This exception is attributed to its local production and the company’s minimal market share, which is less than 5 percent. The decision to adjust LPG prices comes in the wake of rising costs in the international market, specifically tied to the increase in the Saudi CP (contract price), which serves as a benchmark for local operators importing LPG primarily from the Middle East. Read more: LPG price hiked again; 12 kg cylinder to cost Tk 1433

The energy regulator will announce its decision on Sunday next on the appeal of the private operators of liquefied petroleum gas (LPG) to re-fix the current rates of the product at the retail level. The Bangladesh Energy Regulatory Commission (BERC) will announce its decision at 12 noon on October 10, said a press release on Thursday. On September 13 last, the BERC held a public hearing at BIAM auditorium responding to the appeal of the private LPG operators to raise the current price of the fuel. Read: LPG Price: Operators demand an increase but consumers want reduction Participating in the hearing, right groups strongly opposed the operators’ demand for raising the LPG price. The rights groups urged the BERC to proceed on the issue cautiously to avert litigation in higher court, while the operators insisted on increasing the price further to cover losses in their business. Both sides placed their respective arguments during the public hearing held at the BIAM Auditorium. Convened by the BERC, it was presided over by the commission chairman Abdul Jalil. Other members of the BERC also attended the hearing. Read: LPG prices to go up again from Sept 1 The BERC has been fixing the LPG price on a monthly basis since April 12 this year. But LPG Operators of Association of Bangladesh (LOAB) opposes the process saying that much of their costs were not calculated and considered in price fixing that resulted in losses to their business.