LPG price hike fails to ease ongoing crisis in Bangladesh

The liquefied petroleum gas (LPG) market in Bangladesh continues to face severe disruptions, with consumers struggling to obtain cylinders despite a recent government-mandated price increase. 

A 12-kg cylinder, now officially priced at Tk 1,306 following a Tk 53 hike announced on January 4, 2026, is often unavailable or sold at inflated rates of Tk 2,000 or more in many areas, including Dhaka and districts outside the capital.

Consumers report acute hardships in daily cooking, with many visiting multiple shops only to find no stock or exorbitant prices. 

Some allege that cylinders are withheld during the day but sold secretly at night or to favoured customers at higher rates, exacerbating the shortage for ordinary households.

Residents shared their frustrations: One from Rampura described searching several shops over two days before paying double the official price. 

Another in Gendaria bought a cylinder for Tk 2,200 without a receipt. A Kalyanpur resident questioned accountability, noting that government-fixed prices rarely reach the market.

The crisis affects both urban and rural areas. Visits to neighborhoods like Moghbazar, Rampura, Banasree, Mohammadpur, Kalyanpur, and Mirpur revealed most shops lacking 12-kg cylinders, with available stock priced above Tk 2,000.

Stakeholders point fingers in different directions:

The government and Energy Division assert adequate stocks, blaming retailers for creating an artificial shortage in anticipation of the price hike. 

Imports rose from 105,000 tonnes in November 2025 to 127,000 tonnes in December, with no supply constraints. 

Officials have instructed mobile courts and fined outlets. Tk 1.5 lakh was fined in Manikganj for overpricing and missing receipts).

Retailers claim distributors supply less, forcing them to buy at higher costs.

The LPG Operators Association of Bangladesh (LOAB) cites global winter demand, shipping disruptions, including sanctions on vessels, and LC issues, while also accusing retailers of overcharging. 

They note imports are dominated by a few companies and have called for government action against market manipulation.

Traders argue pending approvals for expanded import capacities and financial hurdles contribute to instability.

On January 4–5, emergency meetings involving the Energy Ministry, LOAB, and advisers led to proposals for temporary relief: VAT reductions, lower-interest loans, and easier LC processing (pending approvals from Bangladesh Bank and NBR). 

The ministry maintains no import restrictions and vows stricter monitoring.

Despite these measures and the price adjustment aligned with Saudi Aramco benchmarks, enforcement remains weak at retail levels. 

Consumer groups decry syndicates and call for stronger oversight to ensure official prices are honored and supplies stabilized. 

The situation highlights ongoing challenges in Bangladesh's growing LPG sector, reliant on private imports amid declining piped natural gas availability.