Energy minister meets LPG importers amid supply crisis, price hike

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood held a meeting with liquefied petroleum gas (LPG) importers today (3 October) to address the ongoing supply crisis and allegations of selling cylinders above government-fixed prices.

Commerce Minister Khandaker Muktadir also attended the meeting at the Bangladesh Secretariat in Dhaka, according to a press release issued by the Ministry of Power, Energy and Mineral Resources.

However, it did not detail any decisions taken during the discussion.

The meeting came amid widespread consumer complaints about the unavailability of LPG cylinders in various parts of the country.

In many areas, 12kg cylinders are reportedly being sold for Tk600 to Tk1,000 above the government-set price. The Bangladesh Energy Regulatory Commission (Berc) fixed the price of a 12kg LPG cylinder at Tk1,585 for September, but consumers in several areas are reportedly being forced to pay Tk2,200 to Tk2,600 or more.

Earlier, on 28 September, importers assured government officials at a meeting with LPG operators that import volumes were adequate to meet national demand. Despite the assurance, allegations of artificial supply shortages and overcharging have persisted.

Conflicting claims have also emerged over recent import volumes. One report said LPG imports fell from nearly 160,000 tonnes in August to around 120,000 tonnes in September, with importers attributing the decline to international shipping disruptions, vessel shortages and higher freight costs.

However, a group of LPG operators said in a letter to the Energy Division on Thursday that September imports remained close to August levels. They alleged that some importers deliberately delayed releasing imported LPG cargoes to create artificial pressure on the market and called for an independent inquiry.

Amid the worsening situation, the energy minister on 30 September instructed district commissioners to investigate whether an artificial crisis was being created to inflate prices.

He also ordered strict action against those creating artificial shortages or selling LPG above government-fixed rates, while directing measures to increase supply where genuine shortages exist.