Despite various measures, including VAT withdrawal at the production level, the liquefied petroleum gas (LPG) market remains unstable. On Tuesday (February 24), the Bangladesh Energy Regulatory Commission (BERC) reduced the price of a 12-kg cylinder by Tk 15. According to the new order, the retail price of a 12-kg cylinder is now Tk 1,341.
However, despite the government losing revenue due to the VAT reduction, LPG prices in the market have not decreased accordingly. While a 12-kg cylinder should officially sell for Tk 1,341, consumers in Chattogram are paying Tk 250–350 more. In other districts, including Dhaka, prices are Tk 100–200 above the official rate. The main reason is manipulation by dealer syndicates, which is driving retail prices up.
On Wednesday (February 25), a visit to several areas of Chattogram Metropolitan City and discussions with consumers, retailers, and dealers revealed the chaotic state of the LPG market.
Origin of the Crisis
The crisis began after the US Treasury imposed sanctions on certain LPG-related companies and transport operators. Combined with difficulties in opening Letters of Credit (LCs), this created a shortage of LPG in the domestic market. Reduced imports caused supply chain gaps, and dealers and retailers took advantage of the situation to sell LPG at higher prices. The shortage peaked in December, when consumers in Chattogram had to pay Tk 1,800–2,000 for a 12-kg cylinder. Although the situation has gradually improved with increased imports by major suppliers, dealer syndicates continue to prevent full price stabilization.
Retailers’ Margins
Khaja Garibe Newaz Enterprise, an LPG business located on the third floor of CDA Market in Kazi Deuri, Chattogram, was found closed on Wednesday afternoon. Posing as a customer, Jago News contacted the shop owner, Md Kaiser, using the mobile number displayed at the shop. He said, “We have Total Gas in orange cylinders priced at Tk 1,730, and the 22-mm cylinder at Tk 1,670. If the price is lower, a cheaper cylinder will be provided. Those cylinders are mixed with water. We will not be responsible for any accidents.”
Meanwhile, in the Wasa area, a 12-kg cylinder is sold for Tk 1,600 at Allahar Dan Sanitary on High Level Road, and at Rangdhanu Traders on the same road, it is priced at Tk 1,650. Similarly, at Main Traders on Chanmari Road in Lal Khan Bazar, LPG is sold for Tk 1,650. Md Sohel, the shop owner, explained, “We earn only Tk 50–100 per cylinder. We have to pay for transportation from the dealers and often deliver the cylinders to customers’ homes. Overall, the profit is minimal.”
Faisal, a shopkeeper from Battery Goli area, told Jago News, “Currently, the dealers are not following government directives. We buy cylinders from the dealers at Tk 1,500 each and sell them at Tk 1,600. Most of us retail sellers deliver the filled cylinders to customers’ homes and collect the empty ones. For this, we have to hire an employee. Additionally, we transport the cylinders using rented vehicles. Altogether, even charging Tk 100 extra, we don’t make much profit at the end of the month.”
Abu Syed, a resident of Lal Khan Bazar, said, “In January, I had to buy a cylinder for Tk 1,800. On Tuesday night, I bought one for Tk 1,650.” Meanwhile, Basu Chowdhury of Momin Road added, “Although the government has reduced LPG prices and announced it in newspapers, sellers are charging Tk 300–400 more. Authorities are taking no action.”
Dealers Overcharging 204–254 Taka Per Cylinder
Dealers are reportedly charging an extra Tk 204–254 per cylinder. According to BERC, the current retail price of a 12-kg LPG cylinder is Tk 1,341, which includes Tk 45 for the retailer’s margin and Tk 50 for distribution costs up to the retailer. Therefore, the maximum price at the distributor level for a 12-kg cylinder should be Tk 1,296 (excluding the retailer’s margin). However, dealers and distributors are selling 12-kg cylinders for Tk 1,500–1,550, inflating prices at the retail level.
On Wednesday afternoon, Russel Hossain Babu, director of Al Madina Enterprise in Sagarika, told Jago News that the dealer price for a 12-kg cylinder was Tk 1,500. Asked why the price was so high, he explained, “The company charges more. When cylinders are collected, car operators have to wait at the plant. Each car incurs a demurrage of Tk 2,500 per day, as empty cylinders are sent to the plant for refilling. Sometimes cars have to wait two to three days.”
Al Madina Enterprise works with several operators as a dealer, supplying LPG to various retail shops in the city. Similarly, Mamia Enterprise, a long-time LPG dealer in Halishahar, told Jago News through sales manager Imran Hossain that a 12-kg cylinder currently costs Tk 1,550.
What CAB Says
Addressing the issue, SM Nazer Hossain, Chattogram divisional president of the Consumer Association of Bangladesh (CAB), said, “There is no administration oversight in the market. BERC sets LPG prices. A 12-kg cylinder’s price has been reduced by Tk 15 to Tk 1,341, but consumers are still paying Tk 1,650–1,700. Sellers feel no fear in overcharging, and authorities are not monitoring them.”
He added, “There is a syndicate operating at every level of the supply chain. If prices are to be lowered, the syndicate must be broken. Authorities only hold meetings with traders. After the meetings, the same sellers continue charging higher prices without follow-up. In the open market, consumers often pay Tk 300 more than the official rate.”
Producers and Regulators Respond
The Bangladesh Energy Regulatory Commission (BERC) regulates fuel prices in the country. Md Mizanur Rahman, BERC member (Gas), told Jago News on Wednesday evening, “In 2024, 1.6 million tons of LPG were imported, but in 2025, only 1.465 million tons were brought in, a shortfall of around 135,000 tons. This caused supply shortages at the consumer level. Most major importers reduced LPG imports last year. The crisis was worsened by international shipping restrictions, including US sanctions.”
He added, “BERC has taken several measures to resolve the shortage. All import approvals requested from LOAB have been granted, and last month, capacity approval for an additional 800,000 tons was given. As a result, 109,000 tons of LPG have already been imported this February. Smaller tankers take more time, but many companies have opened letters of credit. We expect no LPG shortages in March.”
Md. Mizanur Rahman emphasized that the main problem is mentality: “Even though supply has normalized, LPG is still sold at inflated prices.”
Amirul Haque, president of LPG Operators of Bangladesh (LOAB), said, “Current imports should be sufficient to prevent consumer shortages. Importers are selling at government-set prices, but retailers are still charging more. Authorities are monitoring the situation. Additionally, tensions in the Middle East related to Iran have arisen, but imports from alternative sources have begun, and supply is expected to increase further.”