LPG price
When will the LPG crisis end? Businesses, homemakers in Dhaka struggle
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.
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“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.
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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.
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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.
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“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
4 days ago
Govt seeks tax relief on LPG to ease supply crisis and curb rising costs
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.
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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.
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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.
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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.
13 days ago
Traders behind LPG price manipulation: Energy Adviser
Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan on Tuesday said the abnormal rise in Liquefied Petroleum Gas (LPG) prices was created by retail and wholesale traders.
“Some traders created an artificial crisis in the market by taking advantage of the Bangladesh Energy Regulatory Commission’s price adjustment announcement,” he told reporters after a meeting of the Advisers’ Council Committee on Government Purchase and Economic Affairs at the Secretariat.
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The adviser said the government has ordered the authorities to conduct mobile courts across the country through district administrations and police to tackle the situation.
“Those who expected LPG prices to rise saw that BERC increased the price by Tk 53 or so and many tried to take advantage of that. We have asked the Cabinet Secretary to ensure mobile courts are conducted in every district. We also discussed this at yesterday’s law and order committee meeting,” he said.
There is no real reason for such abnormal price hike and this has been done through manipulation, he added.
15 days ago
Retailers flout LPG price cap, charge Tk 150–200 more despite BERC order
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."
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"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.
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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.
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"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.
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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.
5 months ago
LPG price to remain unchanged in April
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.
9 months ago
Price of 12-kg LPG cylinder goes down by Tk 28
The price of a 12-kg LPG cylinder has been re-fixed at Tk1,450 for the month of March, down by Tk 28 from the previous month’s price of Tk 1,478, with effect from 6 pm on March 3 (Monday).
As per the announcement of the Bangladesh Energy Regulatory Commission (BERC), the price of per kg LP gas has been brought down by Tk2.35 to Tk120.81 from Tk 123.16 for the month.
The prices for other sizes of LPG cylinders—ranging from 5.5 kg to 45 kg—will also go down accordingly, the BERC added.
LPG price slightly hiked after VAT structure change
It also said that the price of “auto gas” (LPG used for motor vehicles) has been adjusted to Tk 66.43 from Tk 67.78 (including VAT) per litre.
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.
BNP slams LPG price hike as ‘illogical, anti-people’
LPG witnessed the highest price at Tk 1,498 (per 12 kg cylinder) in the local market in February in 2023.
10 months ago
BNP slams LPG price hike as ‘illogical, anti-people’
BNP has strongly protested the rise in the price of a 12-kg LPG cylinder, describing it as a completely ‘illogical and anti-people’ decision.
Speaking to reporters after paying tribute to party founder Ziaur Rahman on Tuesday, party Senior Joint Secretary General Ruhul Kabir Rizvi said the interim government has taken this move due to its lack of accountability.
Earlier, Rizvi, along with the leaders of the newly formed convening committee of the BNP’s Manikganj district unit, placed wreaths at Zia's grave.
“This decision will put immense pressure on low-income and poor people, such as rickshaw pullers, CNG drivers and small shopkeepers,” he said.
The BNP argued that the price hike of the cylindered gas, which is used for household purposes, will exert serious strain on the economy. “It will burden the poor. This decision is completely unjustified and anti-people. It would not have occurred had there been an elected government,” he said.
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The BNP leader also said their party and other democratic groups have been supporting the interim government, but warned that no undemocratic measures should be taken that would cause further hardship for the poor and low-income people.
He voiced concern that the prices of all essential items, including rice, have already exceeded the purchasing power of the poor. “In such circumstances, raising the price of the gas cylinder will only add salt to the wound of the people.”
On Sunday, the government raised the price of a 12kg LPG cylinder by Tk 19, with the new retail price set at Tk 1,478.
The BNP leader said the country’s economy is struggling amid there is no new investment for a lack a democratic government. “No one is daring to invest because the interim government is a temporary government. So, people are uncertain. People are in a state of confusion. To end this uncertainty, a political government is needed,” he said.
Rizvi also said the country now needs a government that can restore power to the people and reflect their will in running the country. “We need an elected government that will be accountable to the people to overcome our economic crisis.”
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He criticised the current government, saying it is running the country with a heavy reliance on foreign loans, while national reserves are starting to dwindle.
The BNP leader warned, "Dark clouds are looming on the horizon. To overcome these, we must move towards an elected government."
The BNP leader called upon the government to stop trying to prolong its power by creating a smokescreen in the name of reforms.
He said the first and foremost responsibility of the interim government is to ensure a free and fair election.
“Who will form a party or create an organisation is not the responsibility of the chief advisor. The responsibility to ensure elections within a specific time frame lies with you (chief advisor). If this is not done, it will create fear and suspicion in the minds of the people about whether a 'ghost' of Sheikh Hasina may emerge,” Rizvi said.
11 months ago
LPG prices remain unchanged for December: BERC
Price of liquefied petroleum gas (LPG) remains the same for the month of December.
According to Bangladesh Energy Regulatory Commission (BERC), the price of per kg LPG will remain at Tk 121.25 for the month of December as it was in November.
The new prices will be effective from 6 pm today (December 3, 2024).
LPG price adjustment for Dec to be announced today
BERC announced the new price, saying that a 12 kg LPG cylinder’s price remains unchanged.
Prices of other sizes of LPG cylinders – from 5.5 kg to 45 kg – will ramian the same, BERC said at a press briefing on Tuesday at its Dhaka office.
BERC officials said LPG price remains unchanged 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.
As per the BERC decision, the price of “auto gas” (LPG used for motor vehicles) also remained at Tk 66.81 per litre (including VAT).
LPG price remains almost the same for November
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.
12 kg LPG cylinder price hiked by Tk 35
1 year ago
LPG price slashed again, 12kg cylinder to cost Tk 999
Price of liquefied petroleum gas (LPG) has been slashed again. Bangladesh Energy Regulatory Commission (BERC) announced the new price, saying that a 12kg LPG cylinder’s price has been reduced by Tk 75.24.
A retail consumer will now get it at Tk 999 instead of Tk 1,074 (including VAT).
Prices of other sizes of LPG cylinders – from 5.5kg to 45kg – will go down rationally, Md Nurul Amin, newly appointed chairman of BERC, said at a press briefing on Monday at the BERC office in Dhaka.
The new prices will be effective from 6 pm today (July 3, 2023).
LPG price drops by Tk 13.42 per kg
BERC officials said the LPG price witnessed a decline in the local market due to the decrease in the prices of Saudi CP (contract price).
Bangladeshi LPG operators normally import their products from the Middle-East market on the basis of Saudi CP.
As per the BERC decision, the price of “auto gas” (LPG used for motor vehicles) also dropped to Tk 46.59 (including VAT) per litre from the previous Tk 50.09.
12-kg LPG price goes up by Tk 57 to Tk 1235
The price of LPG, marketed by state-owned LP Gas Company, will 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 12kg cylinder) in the local market in February this year following the start of the Russia-Ukraine war in February last year.
12kg LPG cylinder to cost Tk 244 less
2 years ago
LPG price drops by Tk 13.42 per kg
Price of Liquefied Petroleum Gas (LPG) has slashed by Tk 13.42 per kg to Tk 89.48 from the previous price of Tk 102.9 for the month of June.
Bangladesh Energy Regulatory Commission (BERC) announced the new price, saying that a 12kg LPG cylinder’s price has reduced by Tk 161.
A retail consumer will get it now at Tk 1,074 instead of Tk 1235 (including VAT).Prices of other sizes of LPG cylinders – from 5.5kg to 45kg – will go down rationally, Md Nurul Amin, newly appointed chairman of BERC, said at a press briefing on Thursday at the BERC office in Dhaka.
The new prices will be effective from 6 pm today (June 1, 2023).
BERC officials said the LPG price witnessed a rise in the local market due to the decrease in the prices of Saudi CP (contract price).
Bangladeshi LPG operators normally import their products from the Middle-East market on the basis of Saudi CP.
Also read: 12-kg LPG price goes up by Tk 57 to Tk 1235
As per the BERC decision, the price of “auto gas” (LPG used for motor vehicles) also dropped to Tk 50.09 (including VAT) per litre from previous Tk 57.52, down by 7.43 per litre.
The price of LPG, marketed by state-owned LP Gas Company, will 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 12kg cylinder) in the local market in February this year following the start of the Russia-Ukraine war in February last year.
2 years ago