LPG Traders Announce Nationwide Halt to Cylinder Sales

The LPG Traders’ Cooperative Society Ltd has announced a nationwide suspension of the supply and sale of liquefied petroleum gas (LPG) cylinders starting Thursday, citing the authorities’ failure to meet their demands.

In a notice issued on Wednesday evening, the organisation directed distributors and retailers across the country to halt LPG sales until further notice. It also said lifting of LPG from all company plants would remain closed during the shutdown.

Earlier, the traders issued a 24-hour ultimatum outlining six demands, including higher commissions for distributors and retailers and the withdrawal of fines imposed during recent enforcement drives. They warned that LPG supply and marketing would be stopped indefinitely if the demands were not addressed.

The society’s president, Selim Khan, said sales would remain suspended from Thursday morning. He added that a meeting with the Bangladesh Energy Regulatory Commission (BERC) was scheduled for 3:00 pm, noting that LPG sales would resume only if the demands were accepted.

The announcement comes amid continued volatility in the LPG market. At a press briefing in Dhaka, the traders claimed the country is facing a severe LPG crisis. They said around 55 million cylinders from 27 companies are in circulation, but only about 12.5 million are currently being refilled, leaving more than 42 million cylinders empty.

Selim Khan said the rising number of empty cylinders has increased distributors’ costs and contributed to higher prices. He alleged that several companies have halted operations, pushing distributors toward financial distress. The traders are seeking an increase in distributor commission from Tk50 to Tk80 per cylinder and retailer commission from Tk45 to Tk75.

However, BERC Chairman Jalal Ahmed said the commission has no legal obligation to consider the demands, as distributors and retailers are not license holders. He said any proposal must come from licensed importers and would require verification and a public hearing.

The government has rejected claims of an LPG shortage. Energy Adviser Muhammad Fouzul Kabir Khan said the situation was largely driven by market manipulation and that district administrations, law enforcement agencies and consumer rights officials are working to stabilise the market through monitoring and enforcement.

The traders’ body alleged that LPG prices were revised without consultations and accused the authorities of creating uncertainty through enforcement actions. They warned that the nationwide suspension of LPG supply and sales would continue indefinitely unless their demands are met.