Bangladesh’s National Security Intelligence (NSI) has recommended a government investigation into allegations that five major liquefied petroleum gas (LPG) companies may have withheld imported supplies, contributing to unusual market conditions and price pressures.
In a report submitted to the Ministry of Power, Energy and Mineral Resources on Thursday, the intelligence agency named five prominent LPG companies — iGaz, Omera, Petromax, BM Energy and Jamuna. The report stated that some LPG consignments held by these companies may not have entered the normal distribution system since around 22 September.
The development comes at a time when consumers across several parts of Bangladesh have reported paying significantly higher prices for LPG cylinders. Although the Bangladesh Energy Regulatory Commission (BERC) fixed the price of a 12-kilogram LPG cylinder at Tk 1,585 in September, reports indicate that the same cylinder has been sold for more than Tk 2,000 in some areas.
The NSI said available import data does not provide clear evidence of a nationwide supply shortage. Instead, the agency has raised concerns that a portion of imported LPG may have been kept in storage rather than released through regular market channels.
State Minister for Power, Energy and Mineral Resources Iqbal Hasan Mahmud confirmed that the government had received the intelligence report. “We are looking into the matter,” he said.
According to government figures cited by the NSI, Bangladesh imported around 158,000 tonnes of LPG in September. The country imported approximately 157,000 tonnes in August. These figures are also consistent with data from the LPG Operators Association of Bangladesh (LOAB), which said LPG imports remained at a satisfactory level and September’s supply was sufficient to meet domestic demand.
The NSI has called for a prompt investigation into whether LPG consignments were intentionally delayed before the recent price increase. The agency noted that the price of LPG increased by around US$64 per tonne from October, while the alleged delay in releasing consignments occurred during a similar period.
The report recommended examining whether any imported LPG had been stored before the price adjustment and whether those consignments were released after prices increased. It also suggested investigating whether any importer or market participant delayed supply releases to gain additional commercial benefits.
The agency warned that if such allegations were proven, reduced market availability could contribute to further price increases. Rising LPG costs have already placed pressure on businesses that depend on the fuel, with additional costs eventually affecting ordinary consumers.
The NSI has advised the government to determine whether the current price rise is linked to an actual supply shortage or whether other factors, including delayed releases or excessive stockpiling, played a role.
As part of the proposed investigation, the agency recommended collecting emergency stock information from major LPG importers from 22 September onwards. The records should include details such as when each shipment arrived, when it was unloaded, the quantity stored and the date it entered the market.
The NSI also suggested identifying how much LPG imported before the October price increase remained unreleased even after the price adjustment. It recommended checking whether any party intentionally delayed releasing consignments in anticipation of higher prices or increased profits.
The agency further advised authorities to assess whether the volume of LPG stocks reportedly held by companies was reasonable in relation to normal business requirements and actual market demand.
Until market conditions return to normal, the NSI has recommended daily monitoring of LPG imports, storage levels and market distribution. It has also suggested swift action if any irregularities are found in the supply chain.
The agency said ensuring adequate availability of imported LPG in the market would help prevent excessive stockpiling and disruptions to normal supply channels.
Meanwhile, LOAB has instructed its member companies, distributors, dealers and retailers to sell LPG at prices fixed by BERC. In a statement issued on Thursday, the association said LPG imports remained satisfactory and that September’s imported volume was sufficient to meet national demand.
LOAB warned that selling LPG cylinders above BERC-approved prices or storing LPG without proper authorisation would violate regulations. It said operators, distributors, dealers and retailers could face action if found involved in such practices.
The government has also taken steps to strengthen market monitoring. According to LOAB, during an online meeting held on 30 September, the state minister instructed district administrations to observe LPG market conditions closely.
LOAB said it would continue cooperating with government authorities and law enforcement agencies to protect consumer interests and maintain market stability.
Omera Petroleum, one of the companies named in the NSI report, has rejected allegations that it withheld LPG consignments to reduce market supply. Tanzim Chowdhury, chief executive officer of Omera Petroleum, said ensuring uninterrupted LPG supply in Bangladesh has always remained a priority for the company.
He said the company had not changed its approach despite periods of market volatility or supply challenges.
A senior official of another company mentioned in the NSI report also denied the allegations. He said the movement of every shipment was properly documented and that the claims did not reflect the actual situation. The official added that the company would provide necessary records if requested by the authorities.
The government’s review will now focus on supply chain management, stock transparency and whether any unusual activities contributed to recent LPG price increases.
