LPG Shortage: Tk 1,200 Cylinder Sells Above Tk 2,000

Consumers across Dhaka have been facing an acute shortage of liquefied petroleum gas (LPG), forcing many to buy cylinders at prices far higher than the government-fixed rate, creating widespread frustration and concern.

On December 24, Mohammadpur resident Kawsar Khan struggled to find an LPG cylinder after his supply ran out. After contacting several nearby shops, he finally managed to buy one cylinder at Tk 1,500. “Such a sudden price hike is unimaginable,” he said. Similar experiences were reported across the city.

Farzana Nila, a resident of Kallyanpur New Market area, said she could not find LPG at any shop on December 30. Later, she managed to buy a 12kg cylinder for Tk 1,800—more than Tk 500 higher than the official price. In Mirpur’s Kazipara, Asma Akhter said she paid Tk 2,100 for a 12kg cylinder on December 31, as it was unavailable even at Tk 1,800. The government-set price for December stands at Tk 1,253.

The 12kg LPG cylinder is the most commonly used for household cooking, and prices have been rising steadily for the past two weeks. Retailers said they are unable to meet customer demand due to supply shortages, forcing consumers to purchase cylinders at inflated prices.

Selim Khan, president of the LPG Cylinder Distributors Association, expressed surprise at the unusually high prices. He said most companies have halted supplies, leaving only a few operators active. “If we order 1,000 cylinders, we receive only 200 to 300. Trucks remain idle, increasing costs,” he said, adding that companies are charging distributors an extra Tk 70–80 per cylinder.

However, he insisted that charging consumers Tk 500–800 above the official price is unjustifiable and blamed retailers for the excessive mark-ups.

Industry sources said winter demand in the global market, combined with a shortage of LPG carrier vessels, has reduced imports. Around 29 LPG ships used for transportation have been affected by US sanctions, raising freight costs and limiting availability. As a result, LPG imports dropped to 90,000 tonnes in December from an average monthly volume of 130,000–140,000 tonnes.

The Bangladesh Energy Regulatory Commission (BERC), which has been fixing LPG prices monthly since April 2021, has acknowledged the issue and instructed industry stakeholders to ensure sales at the official rate. BERC officials said no price hike is permissible before formal adjustment, warning that selling above the fixed price violates regulations.

Consumer rights groups criticised weak market monitoring, saying the lack of enforcement has allowed uncontrolled price hikes, placing an additional burden on households already struggling with rising living costs.