Govt Plans Subsidised LPG for Low-Income Rural Families

The Bangladesh government is set to introduce subsidised liquefied petroleum gas (LPG) cylinders for low-income rural households. Approved in principle during a July 9 meeting chaired by Prime Minister Tarique Rahman, this initiative aims to expand clean energy access, curb deforestation, and protect public health.

Currently, millions of rural families rely on traditional fuels like firewood and cow dung, which expose women and children to harmful indoor air pollution and respiratory diseases. Although national LPG consumption has doubled over the past seven years, high costs prevent widespread rural adoption. Private companies control 98% of the market, often charging nearly double the government’s fixed rate of Tk825 for a 12.5kg cylinder, which remains scarce.

Energy experts have strongly welcomed the policy. Shafiqul Alam, Bangladesh Lead Energy Analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), praised the move but recommended extending the programme to cover urban slums. To prevent subsidised cylinders from being diverted to the black market, he stressed the critical need for an accurate beneficiary database and strict monitoring.

The Ministry of Power, Energy and Mineral Resources is currently formulating the rollout strategy. Officials are looking at successful regional models, such as India’s Direct Benefit Transfer (DBT) system, which transfers subsidies directly to consumers' bank accounts to minimise corruption. If implemented effectively, this programme could radically improve living standards and environmental conservation across marginalised communities in Bangladesh.