State-owned LPG Gas Limited has proposed raising the price of its 12.5-kilogram and 12-kilogram LPG cylinders by BDT 410 per unit, bringing the new proposed price to BDT 1,235 per cylinder.
The company’s Managing Director, Md. Yusuf Hossain Bhuiya, told reporters that the current pricing discrepancy between the state-owned and private LPG suppliers is causing significant cross-subsidisation issues. To address this, the company submitted the proposal based on recommendations from the Bangladesh Petroleum Corporation (BPC)’s pricing committee.
Historical Context of LPG Pricing
This is not the first attempt by the state-owned firm to revise its LPG prices. On 15 September 2025, BPC-owned Bangladesh LPG Limited had proposed increasing the price of a 12.5-kilogram cylinder from BDT 825 to BDT 925. The justification at the time included:
Persistent cross-subsidisation in the market
Increased local transportation costs at the dealer level
Rising operational costs and other charges
However, the Bangladesh Energy Regulatory Commission (BERC) had rejected that earlier proposal, citing concerns over consumer impact.
Proposed Price Adjustment Details
| Cylinder Type | Current Price (BDT) | Proposed Price (BDT) | Increase (BDT) | Increase (%) |
|---|---|---|---|---|
| 12.5 kg | 825 | 1,235 | 410 | 49.7% |
| 12 kg | ~825 | 1,235 | 410 | 49.7% |
Md. Bhuiya emphasised that without this adjustment, resolving cross-subsidisation would remain difficult, and covering overall operational expenses would be challenging. He expressed hope that BERC would consider the new proposal and approve a fair price to maintain market balance.
Potential Impact on Consumers
Experts warn that such a price hike is likely to have a direct effect on everyday consumers. Households relying on gas for cooking may see increased monthly expenses, while the hospitality sector—including hotels and restaurants—could face higher operational costs. This, in turn, could have a knock-on effect on general commodity prices.
While the immediate impact on consumers is expected to be temporary, businesses and households with heavy reliance on gas may feel the pressure more acutely. In this context, the renewed price proposal has now come under BERC’s consideration for review, reigniting discussions on achieving a balanced LPG market in Bangladesh.