The LP Gas Businessmen’s Cooperative Society Limited has declared an indefinite cessation of liquefied petroleum gas (LPG) sales and distribution across Bangladesh, effective from Thursday morning. This move follows a formal ultimatum issued by the association, which demands an urgent restructuring of profit margins and an immediate halt to regulatory fines that traders claim are crippling the industry.
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The Stalemate of Commissions
The crux of the dispute lies in the widening gap between operational costs and regulated profit commissions. Traders argue that the current rates—set by the Bangladesh Energy Regulatory Commission (BERC)—do not account for the logistical realities of the 2026 market. The association is lobbying for a significant upward adjustment to ensure the survival of distributors and retailers.
Table: Proposed Commission Adjustments (Per Cylinder)
| Stakeholder | Existing Rate (BDT) | Proposed Rate (BDT) | Requested Increase |
| Distributors | 50.00 | 80.00 | 30.00 BDT |
| Retailers | 45.00 | 75.00 | 30.00 BDT |
The “Empty Cylinder” Dilemma
Association President Selim Khan highlighted a critical infrastructure crisis that is exacerbating the financial strain on traders. Out of an estimated 55 million cylinders currently in the Bangladeshi market, a staggering 42.5 million are reportedly lying idle. With only 12.5 million cylinders being actively refilled by the 27 registered LPG companies, distributors are facing a 77% deficit in operational assets, driving many towards insolvency.
Regulatory and Governmental Friction
The government maintains a firm stance against the strike. Energy Adviser Muhammad Fouzul Kabir Khan recently asserted that there is no genuine shortage of LPG, attributing market volatility to artificial manipulation and hoarding. Consequently, the Directorate of National Consumers’ Right Protection (DNCRP) has intensified its raids, a move the traders’ association describes as “coercive” and “fear-inducing.”
Furthermore, BERC Chairman Jalal Ahmed has noted a legal technicality: because distributors are not direct licensees of the commission, their demands cannot be considered without a formal proposal from the importers, followed by a mandatory public hearing.
Imminent Outlook
The nationwide suspension includes a total halt on extracting gas from all company plants. A high-level meeting is scheduled for 3:00 PM today (Thursday) between the BERC and association leaders. If a resolution regarding the six-point demands—including the commission hike and the cessation of “arbitrary” fines—is not reached, the energy blockade is expected to continue indefinitely, potentially leaving millions of households without cooking fuel.