United News of Bangladesh

Commerce Minister Khandaker Abdul Muktadir on Thursday said the recent hike in liquefied petroleum gas (LPG) prices at the consumer level is driven by retailers, not importers. “Importers are not increasing prices. Retail traders are responsible for the price escalation in the market,” the minister told reporters after a meeting with LPG importers at the Commerce Ministry conference room. The minister said the government discussed pricing and supply issues in detail with importers and noted their concerns. To prevent market manipulation at the retail level, Muktadir said, monitoring will be intensified through local administrations in the coming days. The Bangladesh Energy Regulatory Commission (BERC) had initially fixed the retail price of a 12kg LPG cylinder at Tk 1,356, later revising it down to Tk 1,341 on February 24. However, cylinders are currently being sold in the market at Tk 1,700–1,800. Responding to a question on when LPG would be available at the BERC-set price, the minister said prices would eventually come down to the previous level, though importers have sought a price review. “The ministry will consider the matter based on data and information. No one can run a business at a loss. However, no decision has been taken to increase LPG prices.” In January, the government allowed the state-run Bangladesh Petroleum Corporation (BPC) to import LPG under a government-to-government (G2G) arrangement to ease supply constraints. But the initiative has yet to yield visible impact in the market due to limited storage capacity. “The main problem for BPC is the lack of storage facilities. Without adequate storage, it cannot proceed with imports,” the minister said, adding that plans are underway to gradually enhance LPG storage capacity. The government may also utilise storage facilities of private importers. Although 33 companies have permission to import LPG in Bangladesh, only around 10 are currently active. The minister said many importers became inactive following the August 5, 2024 developments, creating a supply gap in the market. Muktadir pointed out that reliance on the spot market instead of future contracts contributes to price volatility. Importers are additionally facing banking-related complications, he said, expressing the hope that the LPG market would stabilise soon after addressing these issues.