LPG Crisis Prolongs in Bangladesh

BERC Chairman Jalal Ahmed stated that despite efforts by traders to fill the gap, international market conditions are not favorable. The government has been holding multiple meetings with LPG importers to address the issue. Amirul Haq, President of LPG Operators of Bangladesh (LOTAB), said that although attempts were made to import from the spot market, issues such as vessel shortages and higher freight rates are creating problems. Negotiations with countries like Saudi Arabia, Qatar, the UAE, and the Philippines have been initiated, but immediate solutions have not yet been found.

According to the Energy Division, the government is trying to import 100,000 tons of LPG officially, but it is unlikely to arrive in the country before March. Meanwhile, the crisis has led to a surge in prices. A cylinder officially priced at BDT 1,305 is being sold in some markets for BDT 2,300–2,600, putting severe pressure on lower and middle-income households.

Experts attribute the shortage to decreased imports, instability in Iran, US sanctions, and the inability to purchase LPG in large vessels. Additionally, some major companies failing to open Letters of Credit (LCs) has further limited supply. The government is attempting to rapidly import LPG from the Philippines on a G2G basis to ease the situation.