The Ministry of Power, Energy and Mineral Resources has said the country currently has sufficient stocks of liquefied petroleum gas (LPG), even as retail prices remain higher than normal, and has instructed the administration to take legal action against those creating an artificial supply crisis.
In a notification issued on Sunday, the ministry said recent volatility in the LPG retail market does not reflect the actual supply situation and is largely driven by market-level distortions.
In response, the adviser to the ministry held an emergency meeting with secretaries of relevant divisions and senior officials to review the situation. Later in the afternoon, a separate meeting was convened at the ministry with leaders of the LPG Owners Association and LPG operators, chaired by the energy secretary, to discuss steps to stabilise the market.
Imports rising, stocks ‘adequate’
According to the Energy Division, the country’s LPG supply position remains stable, supported by rising imports.
LPG imports stood at 1,05,000 tonnes in November, increasing to 1,27,000 tonnes in December, indicating no supply-side justification for a decline in availability at the consumer level.
The ministry noted that around 98 per cent of Bangladesh’s LPG demand is met through private sector imports.
However, due to global disruptions, including higher international prices, vessel shortages and shipping restrictions, only 15 of the 32 licensed companies were able to import a combined 12,58,152.45 tonnes of LPG between January and December 2025.
Despite these constraints at the import level, officials said overall supply remains sufficient to meet domestic demand.
Retail distortion, price hike
During the meeting, LPG association leaders and importers alleged that some retailers deliberately restricted supply in anticipation of a possible price adjustment by the Bangladesh Energy Regulatory Commission (BERC).
Later in the evening, BERC announced an increase in LPG cylinder prices to Tk 1,306 from Tk 1,253, validating concerns that speculative behaviour may have contributed to the temporary market disruption.
Enforcement and policy support
To prevent further manipulation, the ministry said district and upazila administrations have been instructed – through the Cabinet Division and the Ministry of Home Affairs – to conduct mobile courts against hoarding and other illegal practices.
The LPG Operators Association of Bangladesh is also expected to issue a formal statement addressing the artificial crisis in the market.
The ministry added that steps are already underway to address some of the long-standing demands of LPG operators, particularly in recognition of LPG as a green fuel. These include discussions on simplifying letters of credit, reducing imposed VAT and other policy supports.
The Ministry of Power, Energy and Mineral Resources expressed optimism that coordinated enforcement and policy measures will help normalise the LPG market in the coming days and stabilise prices for consumers.