BB extends credit facilities for LPG imports to 270-day

Bangladesh Bank (BB) has eased import rules for liquefied petroleum gas (LPG), permitting importers to use credit facilities of up to 270 days, a move aimed at easing dollar liquidity pressure and ensuring steady LPG supplies in the domestic market.

“LPG is imported in bulk and subsequently bottled in cylinders for domestic use. As a result, local importers require time for storage, bottling and related operational processes,” said a BB circular issued on Sunday.

It is hereby clarified that LPG shall be treated as an industrial raw material eligible for import under supplier’s or buyer’s credit. Accordingly, imports of LPG may be allowed for usance terms of up to 270 days, the circular added. 

In addition to availing trade credit from suppliers, Authorized Dealers (ADs) are advised to arrange buyer’s credit facilities from overseas banks and financial institutions, or bill discounting facilities through Offshore Banking Units (OBUs) of scheduled banks in Bangladesh, subject to compliance with applicable foreign exchange regulations and prudential credit norms.

All other relevant provisions in this regard shall remain unchanged.