Despite monthly price adjustments, the price of an LPG cylinder has nearly doubled in five years. Between April 2021 and April 2026 the Bangladesh Energy Regulatory Commission (BERC) raised the price 32 times, cutting it on several occasions in between. Overall, the fixed price of a 12 kg cylinder went from Tk 975 to Tk 1,940, a rise of Tk 965 or about 99 percent.
BERC first set a price for privately supplied LPG on 12 April 2021. It fell to Tk 906 and Tk 842 in May and June, then rose five months in a row to Tk 1,313 by November. In both 2022 and 2023 there were seven increases and five cuts, leaving the price at Tk 1,404 in December 2023. There were seven increases in 2024, while in 2025 two increases were outweighed by several cuts, taking the price down to Tk 1,215 in November.
In 2026 the price stood at Tk 1,253 in January and Tk 1,356 in February, easing to Tk 1,341 after a VAT cut. Two increases in April totalling Tk 599 took it to Tk 1,940. It was then cut by Tk 55 in June and Tk 357 in July, raised by Tk 70 to Tk 1,598 in August, and cut by Tk 13 to Tk 1,585 in September.
In the shops, however, cylinders are not sold at the fixed price. The cylinder priced at Tk 1,585 in September sells for Tk 2,150 to 2,500, with retailers blaming a shortage. Yet on 28 September LPG companies told Power and Energy Minister Iqbal Hasan Mahmud Tuku there was no shortage. NBR figures show imports of 157,760 tonnes in August and 118,742 tonnes in September up to the 22nd.
On 30 September the minister asked deputy commissioners to investigate whether artificial shortages were being created to charge more, and to report back with evidence. On 1 October the LPG Operators Association of Bangladesh (LOAB) said supply was adequate and warned of strict legal action against selling above the BERC price or hoarding.
Energy expert Shamsul Alam told Bangla Tribune that consumers will struggle to cope with prices rising at this rate, and that the biggest problem is that LPG is sold nowhere at the BERC price. He believes bodies such as BERC, the Competition Commission, the consumer protection directorate and BSTI are not acting effectively, and said licences of dishonest traders should be cancelled if necessary.
This report is based on reporting by Sanchita Situ for Bangla Tribune.
Photo: Evil Monkey / Wikimedia Commons (CC BY 2.5)
Source: Bangla Tribune
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