Residents across Dhaka are struggling to obtain 12-kilogram LPG cylinders, with prices soaring far above the government-mandated rate. On the morning of 24 December, Kauser Khan of Mohammadpur contacted his local shop after his cylinder ran out, only to be told none were available. Subsequent calls to other outlets proved equally futile. Eventually, he managed to secure a cylinder from a third shop, paying BDT 1,500—well above the official price. “Such a sudden increase is unimaginable,” he said.
Similar experiences have been reported elsewhere. Farzana Neela from Kallyanpur New Market recounted that on 30 December, she was unable to locate a cylinder at any outlet. She eventually purchased one for BDT 1,800, BDT 500 more than the fixed price. Likewise, Asma Akhter of Mirpur’s Kazipara faced the same challenge on 31 December, ultimately paying BDT 2,100 for a cylinder officially priced at BDT 1,253.
The 12-kilogram cylinder is the most commonly used size for household cooking. Over the past fortnight, prices have risen consistently, with retailers citing supply shortages. Conversations with four major Dhaka retailers revealed that, despite high demand, LPG deliveries remain insufficient. Buyers are often forced to pay inflated prices, which retailers then pass on to consumers.
Selim Khan, president of the LPG Cylinder Distributors Association, expressed concern over these abnormal price hikes. Speaking to Prothom Alo, he said most companies have halted supply, with only a handful continuing deliveries. “If 1,000 cylinders are requested, only 200–300 are supplied. Trucking costs have increased, and companies are charging an extra BDT 70–80 per cylinder,” he added.
Causes of Price Hike:
| Factor | Impact |
|---|---|
| Seasonal global demand | Slight increase in market price |
| Import vessel shortage | 29 regular LPG ships affected by U.S. sanctions |
| Reduced import volume | December import fell to 90,000 tonnes from an average of 130,000–140,000 tonnes |
| Increased transportation cost | Companies pass on some costs via higher retail prices |
Humayun Rashid, Vice President of LPG Operators of Bangladesh (LOAB), confirmed a roughly 40% drop in December imports, attributing the market shortage primarily to disrupted supply. Despite this, companies continue to sell at government-fixed rates, but retailers operate outside this control.
Regulatory Response:
Since April 2021, the Bangladesh Energy Regulatory Commission (BERC) has set monthly LPG prices. For December, the 12-kg cylinder was priced at BDT 1,253. BERC has sent letters to LOAB instructing members to prevent any overcharging at wholesale or retail levels. Chairman Jalal Ahmed emphasised that any verified additional import costs will be considered in future price adjustments, but until then, overcharging is strictly prohibited.
Consumer advocacy groups, however, criticise BERC’s limited enforcement capacity. M Shamsul Alam, energy advisor to the Consumers Association of Bangladesh, noted that despite legal restrictions, inflated prices are readily available, placing undue burden on consumers. He added: “This undermines public trust in the regulator, as no government body is taking effective action to curb overpricing.”