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

Bangladesh Bank has relaxed import rules for liquefied petroleum gas, permitting importers to use credit facilities of up to 270 days, a move aimed at easing dollar liquidity pressure and ensuring steady LPG supplies in the domestic market. Under the new arrangement, LPG imports will now be treated as industrial raw materials, enabling businesses to import LPG on deferred payment terms through suppliers’ credit or buyers’ credit for a maximum period of 270 days, according to a circular issued by the central bank on Monday. The circular, sent to all scheduled banks by the Foreign Exchange Policy Department of Bangladesh Bank, noted that LPG is primarily imported in bulk and subsequently bottled for distribution. Considering the multiple stages involved in processing and marketing, the central bank has decided to categorise LPG as an industrial raw material. Earlier, a circular issued on December 29 allowed a 270-day usance period — the timeframe for deferred payment — for industrial raw material imports. With the latest decision, LPG importers will now enjoy the same facility. Besides, importers will be allowed to obtain buyers’ credit from foreign banks or financial institutions. They may also access bill discounting facilities through offshore banking units (OBUs) of local banks. Bangladesh Bank said that after import, LPG requires a considerable amount of time for storage, bottling and marketing. The extended credit period has been granted to support importers’ cash flow and accelerate the import of this essential energy commodity. The move comes amid a severe LPG supply crunch in the domestic market that has persisted for over two weeks. During this period, LPG prices have surged sharply, with a 12kg cylinder being sold at nearly double the government-fixed price. A cylinder officially priced at TK 1,300 is now selling for as high as Tk2,500 in some areas. Titas low pressure chokes gas supply across Dhaka; residents struggle Similarly, the price of a 35kg LPG cylinder has risen to Tk5,000, compared to its regulated price of Tk3,200, causing widespread hardship for consumers. LPG traders attributed the crisis to a shortage of vessels, complications in opening letters of credit (LCs), and the temporary shutdown of several LPG plants. Industry insiders expressed optimism that the special facilities provided by Bangladesh Bank would play a crucial role in normalising LPG supply in the market in the coming days.

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

Even though the Bangladesh Energy Regulatory Commission (BERC) had set the price of a 12- kg LPG (liquefied petroleum gas) cylinder at Tk 1,364 for the month of July, many consumers in the capital were being forced to pay between Tk 1,500 and Tk 1,600 — well above the official rate. The price discrepancy has sparked frustration among households and small businesses, who say they are being burdened with unjustified additional costs amid already mounting living expenses. Talking to UNB, a resident of Uttara said, "I went to three different shops in my area, and no one was selling the cylinder for less than Tk 1,500. If the government fixes a price, why is it not being enforced? We, the common people, are suffering." Fuel prices to remain unchanged in August "We are the worst sufferers," said Kokhon, a restaurant owner, adding, "We use a lot of gas cylinders, but the prices are extremely high. Retailers always charge more than the price set by BERC — they don’t care about the official rate. It’s all controlled by a syndicate," he added. Akhi Afrin, a housewife from Uttara’s Diabari, expressed similar frustration. "This is not a luxury item. LPG is a basic necessity for cooking. If prices go up like this, how will we manage our household budget?" she said. Surprisingly, many consumers remain unaware of the government-fixed LPG price. When asked, several gave similar responses, UNB observed. Climate change driving up grocery prices globally Questioned about the inflated rates, Raju Ahmed, Assistant Director (Tariff-2) at BERC, said the market is currently under surveillance by the Directorate of National Consumers' Right Protection, in coordination with the respective Deputy Commissioners' (DC) offices. In response to why prices remain inflated despite ongoing monitoring, Raju Ahmed told UNB, “It should not be the case, but if such irregularities are occurring, I will bring the matter to the attention of higher authorities.” He urged consumers to lodge formal complaints with the Directorate, attaching valid receipts as evidence, so that appropriate action can be taken. Retailers, however, claim they are not deliberately ignoring the government-set rate. Instead, they point to problems in the supply chain and alleged price irregularities at the wholesale level. BERC reduces LPG, auto gas prices for July "We're buying cylinders at higher rates from distributors — sometimes over Tk 1,450 per cylinder," said Jahidul Islam, an LPG retailer in Uttara. "If we sell at BERC’s price, we’ll incur losses. We are being forced to charge higher just to stay in business," he said. Another seller, requesting anonymity, said distributors themselves are not adhering to BERC prices. "There is no proper monitoring, and small sellers like us are being blamed unfairly," he added. He also mentioned that popular brands such as Beximco and Bashundhara are sold at higher rates due to their high demand. Experts argue that the core issue lies in weak enforcement of BERC’s pricing directives. "BERC may fix the prices, but without proper monitoring and a transparent distribution chain, consumers will never benefit," said an energy expert and consumer rights advocate. "There needs to be strict action against those who are overcharging, including wholesalers," he said. Faridpur farmers in distress as onion prices plummet Consumers are now calling on the government to intervene and ensure LPG is sold at the regulated price. Many have urged BERC and the Ministry of Energy and Mineral Resources to conduct market inspections and hold both distributors and retailers accountable. Until then, the gap between official pricing and real-world costs continues to weigh heavily on the average household.

The LPG Operators Association of Bangladesh (LOAB) has strongly opposed the government’s proposal to increase Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG) cylinders from 7.5% to 10%. They warned that the move could severely destabilise the country’s energy security and hurt millions of low-income families. LOAB President Muhammed Amirul Haque in a statement said the proposed tax hike poses a ‘serious threat’ at a time when domestic natural gas reserves are dwindling and new household gas connections have already been suspended. “LPG is the primary alternative fuel for millions of families. Increasing VAT will make it less affordable and limit access for those who need it the most,” he said. Prices Up, Prices Down: New budget brings mixed bag of VAT, duty changes According to LOAB, more than 1.5 million tons of LPG are imported annually by the private sector with 97% of it used for cooking. The usage is equivalent to approximately 2 million cubic feet per day (mmcfd) of natural gas and supports over 40 lakh households across the country. Amirul Haque said  the widespread use of LPG plays a critical role in reducing deforestation especially in rural areas where it replaces traditional biomass fuels like firewood. “With more than 4 crore LPG cylinders in circulation and rising demand each year, this tax increase could not only threaten clean energy adoption but also place an undue burden on low-income consumers,” he added. LOAB has called on the government to reconsider the proposed VAT increase in the interest of national energy security, environmental sustainability, and public welfare.  

The price of a 12kg LPG cylinder will remain unchanged at Tk1,450 for the month of April. The new price will be effective from 6 pm on April 6 (Sunday). As per the announcement of the Bangladesh Energy Regulatory Commission (BERC), the price of per kg LP gas has been kept unchanged at Tk120.81 for the month of April. Price of 12-kg LPG cylinder goes down by Tk 28 The prices for other sizes of LPG cylinders—ranging from 5.5 kg to 45 kg—will also remain unchanged accordingly, the BERC added. It also said the price of “auto gas” (LPG used for motor vehicles) has been kept at Tk 66.41 (including VAT) per litre. Prices of 12 kg LPG cylinder goes up by Tk 19 But, the price of LPG marketed by the state-owned LP Gas Company will also remain unchanged, as it is locally produced and holds a market share of less than 5 percent. LPG witnessed the highest price at Tk 1,498 (per 12 kg cylinder) in the local market in February in 2023.  

The price of liquefied petroleum gas (LPG) has been slightly raised following a change in the structure of the value-added tax (VAT) by the National Board of Revenue (NBR), according to the Bangladesh Energy Regulatory Commission (BERC). In a press release, the BERC announced that the price of LPG per kg has been set at Tk 121.56, up from Tk 121.19, showing an increase of Tk 0.37. As a result, the price of a 12 kg LPG cylinder will now be Tk 1,459, an increase of Tk 4, effective from January 14 (Tuesday). Prices for other sizes of LPG cylinders—ranging from 5.5 kg to 45 kg—will also rise accordingly, the BERC added. LPG exempted from VAT at production stage Besides, the price of “auto gas” (LPG used for motor vehicles) has been adjusted to Tk 67.27 per litre, up from Tk 66.78 (including VAT). However, the price of LPG marketed by the state-owned LP Gas Company will remain unchanged, as it is locally produced and holds a market share of less than 5 percent. LPG witnessed the highest price at Tk 1,498 (per 12 kg cylinder) in the local market in February last year.

Price of liquefied petroleum gas (LPG)  will remain unchanged for the month of January. This is second consecutive month the price of LPG remains the same. According to Bangladesh Energy Regulatory Commission (BERC), the price of per kg LPG will remain at Tk 121.25 for the month of January as it was in November and December. The decision will be effective from 6 pm today (December 3, 2024). BERC announced the decision saying that a 12 kg LPG cylinder’s price will remain unchanged. Prices of other sizes of LPG cylinders – from 5.5 kg to 45 kg – will be the same, BERC said at a press briefing on Thursday at its Dhaka office. BERC officials said LPG price remains unaffected in the local market as Bangladeshi LPG operators normally import their products from the Middle-Eastern market on the basis of Saudi CP which did not change. Read: LPG prices remain unchanged for December: BERC As per the BERC decision, the price of “auto gas” (LPG used for motor vehicles) also remained at Tk 66.78 per litre (including VAT). The price of LPG, marketed by state-owned LP Gas Company, will also remain the same as it is locally produced with a market share of less than 5 percent. LPG witnessed the highest price at Tk 1,498 (per 12 kg cylinder) in the local market in February last year.

Members of Coast Guard (CG) and Bangladesh Navy rescued 31 people from a lighter vessel that caught fire at Kutubdia Point in the Bay of Bengal early Sunday, said authorities. Lieutenant Shakib Mehbub, an official of the east zone of the CG in Kutubdia, confirmed the matter saying that crews and other staffs of the vessel jumped off the vessel in the sea after it caught fire around 1am. Later, the floating crew and others were rescued, he said. Read: Kalurghat Bridge struck by lighter vessel carried by strong current in Karnaphuli Earlier, the anchored vessel carrying Liquefied National Gas (LNG) caught fire following an explosion at Kutubdia Point. Mohammad Shahadat Hossain, acting Kutubdia upazila nirbahi officer, said that they informed the higher authorities, Bangladesh Navy and Coast Guard. Read more: Lighter vessel carrying goods sinks in Ctg’s Karnaphuli River Locals said the ‘B-LPG Sofia’ vessel caught fire with a big bang when it was at the outer anchorage of the Chittagong Port around 1am.