LPG prices in Bangladesh soar on artificial scarcity

Traders call an indefinite strike for higher distribution charges.

Mohammad Suman and Asifur Rahman

Mohammad Suman and Asifur Rahman

The Daily Star

azizur-rahman.jpg

In Dhaka, dealers say the companies themselves are selling LPG at inflated rates. PHOTO: THE DAILY STAR

January 9, 2026

DHAKA – The government fixed the price of the standard 12kg LPG cylinder at Tk 1,306 for January, but they are selling between Tk 1,650 and Tk 2,200, according to traders in Dhaka and Chattogram.

In 2025, 14.65 lakh tonnes of LPG were imported, up slightly from the previous year, with 54.2 percent of it arriving in the last six months, according to data from the National Board of Revenue. It cost importers about Tk 11,780 crore, down about 2.7 percent year-on-year.

The imports were led by Meghna Fresh LPG, Omera Petroleum, Jamuna Spacetech Joint Venture, Sun Gas, United Aygaz LPG, Petromax LPG, Delta LPG, Bashundhara LP Gas, Premier LPG and BM Energy.

In Dhaka, dealers say the companies themselves are selling LPG at inflated rates.

“We are supposed to buy a 12kg cylinder at Tk 1,150 to sell it at the fixed rate of Tk 1,306. But the companies charge Tk 1,300–1,340, making it impossible to sell at the government fixed rate at the retail level,” said Saiful Islam, a dealer in the Sadarghat area.

The Daily Star has seen at least four tax challan documents that showed a top importer sold per cylinder between Tk 1,302 and Tk 1,329 between January 4 and 7 to a distributor. The unit rate was Tk 1,221 and 1,248 in those challans and a 7.5 percent VAT was added on top of the sum.

As per the January rate fixed by the Bangladesh Energy Regulatory Commission, the companies were supposed to sell the product at Tk 1,158 to distributors, who were supposed to sell it at Tk 1,208 to retailers.

However, a retailer in the Kachukhet area was yesterday seen selling a 12kg cylinder to customers for Tk 2,100 and Tk 2,200.

“I have to buy cylinders at Tk 1,880 to Tk 1,900 from dealers. Moreover, I receive only 10-12 cylinders every 3-4 days, while daily demand exceeds 30,” he said.

In Chattogram, The Daily Star visited 12 retail shops in Agrabad, Kazir Dewri, Chawkbazar, Oxygen and Muradpur and found the LPG cylinders were selling at well above the official rate. Four shops reported having no gas-filled cylinders in stock.

“Retailers are forced to sell at higher prices because we buy LPG at elevated rates,” said Abul Hossain, manager of Rahmat Enterprise, which was selling the 12kg cylinders of I-Gas and Omera brands at Tk 1,750.

Contacted, Mohammed Amirul Haque, president of the LPG Operators Association of Bangladesh, said there are some issues in the supply chain and higher demand during winter have caused slight market instability even though imports are normal.

“We hope the situation will stabilise once the supply chain is fully restored in a few days.”

When prodded about importers themselves selling the product at a high rate, he said: “I cannot say all of us are honest. If anyone sells above the government-fixed price, their names should be made public.”

Highlighting the government’s inaction, he said: “Over the past year, we have repeatedly requested approval to increase import volumes and permission to expand distribution units of the companies, but last November they told us that expansion is not allowed by the law. This is a short-sighted approach.”

Meanwhile, LP Gas Traders Cooperative Society announced an indefinite countrywide strike from today in the marketing and supply of the fuel.

Though the association had set a 24-hour ultimatum, it called the strike last night in a press statement. The statement said the traders will not collect LPG from the companies’ plants.

The development comes after it staged a human chain in front of Jatiya Press Club yesterday demanding higher distribution and retail charges.

“Without our consent, the BERC fixed the January rate. At this rate, we cannot even purchase cylinders. On top of that, the administration has been conducting drives,” said its President Selim Khan.

The association demanded that distribution charges be raised from Tk 50 to Tk 80 and retailer charges from Tk 45 to Tk 75, and called for an end to the “harassment” under the administration’s drives.

They had warned that if their demands were not met by Thursday, they would suspend distribution and marketing indefinitely.

According to the association, the main reason behind the price hike is a supply crunch.

“Only 1.25 crore cylinders out of 5.5 crore are being refilled by companies. The rest remain empty, increasing distributors’ costs. With most companies shutting down, distributors are on the verge of bankruptcy,” Selim said.

Meanwhile, the LOAB has requested that the government restructure VAT on LPG.

In a letter to the NBR chairman, LOAB proposed withdrawing 7.5 percent VAT at the production stage and imposing 10 percent VAT at the import stage, while keeping the advance tax at zero.

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