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Artificial LPG Crisis Deepens as Prices Soar, Consumers Suffer Across Bangladesh


MFA Mamun

Dhaka, Jan 8, 2026:
Despite adequate imports and government-fixed prices, the bottled liquefied petroleum gas (LPG) market in Bangladesh has plunged into fresh turmoil, with consumers across major cities paying hundreds of taka more per cylinder amid allegations of market manipulation and supply control by a handful of dominant companies.

In Dhaka, Chattogram, Khulna, Rajshahi, Sylhet, Faridpur, Mymensingh and other places, retailers are selling 12kg LPG cylinders at prices ranging from Tk 1,650 to Tk 2,200, far above the Bangladesh Energy Regulatory Commission’s (BERC) January rate of Tk 1,306. The price surge comes even as official data show stable imports and sufficient national stock.

Md Golam Kibria, a commercial general manager of an RMG company and a resident of Kazipara in Mirpur-10, Dhaka, said he recently purchased a 35kg LPG cylinder of a Petrobangla-linked brand for Tk 4,500, which he described as significantly higher than the actual price.

“The gas seller charged an inflated rate, claiming there was no supply of cylinders and that he managed to arrange one with difficulty,” Kibria said.

The owner of Jolojog Hotel & Restaurant in Magura said they purchased a 35kg LPG cylinder for Tk 3,900, which is Tk 400 higher than the official price. However, he added, there is currently no supply of LPG cylinders due to a strike by traders.

When contacted, Md Jillur Rahman, who is involved in LPG cylinder sales in Magura district, said there has been no supply of Bashundhara LPG cylinders for nearly a month.

He added that the situation is similar for other brands, including Jamuna, Beximco, Omera, TMSS, and Delta, as fresh cylinder supplies have remained unavailable in the market.

Jillur said he currently has around 100 cylinders of United Aygaz LPG, but customers are required to purchase them at Tk 2,400 along with the cylinder, with no option to exchange empty bottles.

Typically, consumers pay for an LPG cylinder only during their first purchase in a locality. For subsequent purchases, the empty cylinder is exchanged for a filled one, and only the gas price is charged.

Attempts were made to contact officials at the Bashundhara LPG distribution point serving Bashundhara Residential Area in Dhaka, but they did not respond to phone calls.

According to traders, the problem lies not in imports but in the distribution chain, which they allege has been monopolised by a few large operators who are charging inflated rates at the wholesale level.

Traders blame upstream manipulation

Saiful Islam, an LPG trader in Dhaka’s Sadarghat area, said selling at the government-fixed rate has become impossible. “We are supposed to buy a cylinder at around Tk 1,150 and sell it at Tk 1,306. But companies are charging us up to Tk 1,340 per cylinder. If we follow the official rate, we incur losses,” he said.

Similar complaints were echoed in Chattogram. Abul Hossain, manager of Rahmat Enterprise in Muradpur, said retailers have little choice but to pass on higher costs to consumers. “We are buying cylinders at inflated prices from distributors. That’s why a 12kg cylinder is now selling for Tk 1,700 to Tk 1,800 here,” he said.

Earlier reports showed that tax challan documents revealed some top importers selling cylinders to distributors above the BERC-approved rate, raising serious questions about compliance and regulatory oversight.

Consumers bear the brunt

The price shock has hit urban households particularly hard, where piped natural gas connections remain limited or unavailable.

In Rampura Area of Dhaka, homemaker Farhana Rahman said her monthly cooking budget has become unmanageable. “Last month I bought a cylinder for Tk 1,400. This week, the same shop asked Tk 2,100. We don’t have gas lines here—what option do we have?” she said.

In Khulna city, restaurant owner Masud Rana said his business costs have surged overnight. “We use at least two cylinders a day. With these prices, small eateries like ours will not survive. Customers won’t accept higher food prices,” he said.

Rajshahi resident Abdul Karim, a private service holder, said he waited three days to get a refill. “Even after paying Tk 1,900, supply was uncertain. Some shops said cylinders were ‘finished’ despite visible stock,” he alleged.

In Chattogram’s Oxygen area, housewife Nusrat Jahan said the crisis feels engineered. “There is gas in the country, but not for us. Someone is benefiting while ordinary people suffer,” she said.

Strike worsens supply fears

The situation deteriorated further after the LP Gas Traders Cooperative Society announced an indefinite nationwide strike, halting LPG marketing and supply from Thursday. The traders say the January price was fixed without their consent and does not reflect real distribution costs.

Association President Selim Khan claimed only a fraction of available cylinders are being refilled. “Out of 5.5 crore cylinders, only 1.25 crore are in circulation. The rest remain idle, creating artificial scarcity. Distributors are being pushed to the brink,” he said.

The traders have demanded higher distribution and retail margins and an end to what they describe as “administrative harassment” through enforcement drives.

Monopoly concerns and regulatory silence

Industry insiders and consumer rights advocates argue that the LPG sector’s rapid expansion—especially in Dhaka and other major cities—has come at the cost of fair competition.

With household and commercial kitchens increasingly dependent on LPG due to the absence of government gas connections, a few large companies now dominate imports, storage and bottling. Critics say this concentration has enabled artificial supply shortages and excessive profiteering.

As winter demand peaks and uncertainty over supply deepens, consumers fear the crisis may worsen unless authorities intervene decisively to restore transparency, ensure compliance with fixed prices, and protect millions who now rely on LPG for daily cooking.

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