LPG Price Hike Fuels Fears of Tk 2,500 Cylinder Cost

Consumers in Bangladesh fear they may have to pay Tk 2,500 or more for a 12-kg liquefied petroleum gas (LPG) cylinder following the latest government-approved price hike, amid concerns over weak market monitoring and prices exceeding official rates.

The Bangladesh Energy Regulatory Commission (BERC) on Monday raised the official price of a 12-kg LPG cylinder by Tk 223 to Tk 2,060 for November.

The price stood at Tk 1,306 in January, meaning it has increased by Tk 754, or around 57.7%, in 11 months.

Criticising the decision, Consumers Association of Bangladesh (CAB) President AHM Shafiquzzaman said LPG prices had risen repeatedly since April, with occasional reductions failing to offset the overall increase.

BERC sets LPG prices at the beginning of each month, but consumers often pay several hundred taka more at retail outlets, he said.

“The price of a 12-kg cylinder has now crossed Tk 2,000, which is deeply distressing for ordinary consumers,” Shafiquzzaman said.

He said CAB had repeatedly urged the government not to increase LPG prices in November, arguing that more than 80% of LPG was used by ordinary consumers. He accused the government of prioritising business interests over consumers.

BERC held a public hearing on LPG pricing on October 29. At the hearing, CAB submitted a written complaint alleging that traders were seeking higher prices by citing supply shortages.

CAB claimed that some businesses were withholding supplies despite available stocks and import records, creating an artificial shortage without being held accountable.

The organisation also questioned claims by importers that higher shipping costs, foreign exchange rates and other expenses justified the increase. It called for the publication and verification of data on changes in the Saudi contract price, freight and trade premiums, insurance and exchange rates.

“The price was raised on the pretext of rising costs, but the public never learned how much costs had actually gone up,” Shafiquzzaman said, adding that the decision had increased pressure on consumers.

He warned that the increase would hit salaried households and small restaurant operators particularly hard.

A family of four to five members typically needs about one and a half 12-kg cylinders a month, he said. If retailers continue charging above the official rate, a small family could spend Tk 3,500 to Tk 4,000 a month on LPG alone, he added.

Consumers said they already had to pay more than the government-set price and feared the latest increase would push the retail cost of a 12-kg cylinder close to Tk 2,500.

Moinul Hasan, an employee of a private company, said he had paid Tk 400–500 more than the official price when buying a cylinder in October, when the rate was Tk 1,837.

“The last time I bought one, I paid Tk 2,350. Now that the price has gone up, I am sure I will have to pay more than Tk 2,500,” he said.

Homemaker Fahmida Akter said she had bought an electric cooker two months earlier to reduce LPG expenses but returned to using more LPG after her electricity bill increased.

“Now the LPG price has gone up again. We consumers are just swinging like a pendulum at the mercy of market prices,” she said.

The price increase is also worrying restaurant operators. Bangladesh Restaurant Owners Association General Secretary Imran Hossain said higher LPG costs would add to the difficulties facing small restaurants.

He warned that raising food prices to cover rising expenses could drive away customers, threatening businesses across the restaurant-based food chain.

BERC has been setting LPG prices since April 2021, when the price of a 12-kg cylinder was initially fixed at Tk 975.

Bangladesh currently has 35 actively registered LPG importing companies, of which 23 have the infrastructure and capacity to import the fuel. However, only 10 companies imported LPG in September, according to the National Board of Revenue.

At the BERC public hearing, several companies proposed raising the existing commission of Tk 200 per 12-kg cylinder. Omera proposed Tk 478, Petromax Tk 349, Delta Tk 360 and Meghna Group Tk 300.

CAB Energy Adviser M Shamsul Alam accused major businesses and distributors of exerting excessive influence over the market and said the government’s decision had placed further pressure on consumers.

He called for a comprehensive overhaul of energy policy, saying effective regulation and consumer-focused pricing were essential to ensure fair LPG prices.