A severe crisis has hit Bangladesh’s bottled Liquefied Petroleum Gas (LPG) market with 12-kg cylinders selling for Tk 1,830 to Tk.2,100—Tk.300 to Tk.500 above the government-fixed rate of Tk.1,585 set on September 10.
Despite paying inflated prices, consumers face widespread shortages as many retail shops across Chattogram and other major cities have run out of stock. State-owned LP Gas Limited (LPGL) maintained its 12.5-kg cylinder price at Tk.777 but its limited market share cannot meet public demand.
The crisis stems from a massive natural gas shortage. Petrobangla reports national demand near 4,000 MMCFD against a supply of 2,600 MMCFD forcing households, commercial users and industries to switch heavily to LPG.
Although private operators imported 126,000 tonnes of LPG this month higher than previous years distribution networks are overwhelmed by the demand surge.
Additionally the Middle East geopolitical tensions and skyrocketing international freight costs have disrupted supply chains. Importers note that while BERC set prices using a $160 per tonne freight benchmark also real shipping charges have surged to $400 per tonne alongside higher Saudi Aramco contract prices ($625/tonne for propane $660 for butane). Private importers warn they cannot sustain operations under these losses.
BERC officials confirmed they are holding emergency meetings with LPG producers and importers to normalize market supply.
