LPG cylinders weighing 12kg are selling for BDT 400-500 above the official price in Bangladesh. Supplies have eased since January’s acute shortage but consumers remain unhappy with pricing, according to interviews with multiple retailers and households in Mohammadpur, Mirpur-1 and other parts of the capital, as well as several cities outside the capital.

Operators said last month’s severe shortage has cleared but implementing the Bangladesh Energy Regulatory Commission (BERC) price remains challenging. They also expect supply to stabilise next month. Businesses are sourcing additional volumes, hoping increased availability will push prices down.

Bangladesh’s monthly LPG demand averages 120,000 tonnes. Supply fell below 100,000 tonnes in January this year. By February 18, 76,000 tonnes had arrived. If all ordered shipments arrive this month, supply will near 130,000 tonnes. Operators credited rising imports for averting a severe shortage but acknowledged that prices remain high for consumers.

Amirul Haque, president of the LPG Operators Association of Bangladesh (LOAB), told Bonik Barta: “The shortage is no longer at an unusual level. The situation is normal. But market monitoring is needed to keep supply and prices reasonable; this requires law enforcement involvement for field-level oversight.”

He claimed, however, retailers may be charging an extra BDT 50-100 per cylinder, with the current 12kg cylinder price not exceeding BDT 1,400-1,500.

While the acute shortage has eased, the LPG supply system has not normalised. Visits to several markets in the capital found that many retailers have stopped selling altogether, unwilling to argue with customers over inflated cylinder prices.

BERC has set the price for a 12kg cylinder at BDT 1,356 this month, up from BDT 1,306 in January. But market visits found cylinders are selling for at least BDT 400-500 more than the official rate.

In the capital’s Shewrapara area, a general store stocking several brands is selling a 12kg Petromax cylinder for BDT 1,850. Fresh and Delta LPG cylinders are going for BDT 2,000 apiece while other brands are priced at BDT 1,900.

Asked why he charges above the official rate, the retailer told Bonik Barta: “The shortage has eased a bit, but prices are much the same. We can’t buy cheaply from the distributors. They plead supply shortages if we push for lower prices. And since customers need it, we have to stock it, even at these high rates.”

Arman Hossain, a resident of Tajmahal Road in Mohammadpur, buys one cylinder a month for his family from a local shop. Has he bought one this month? “Not yet,” he said. “I called the shopkeeper to ask if he had any. He said the price is BDT 1,900 (per cylinder).” In January, Hossain paid BDT 2,200 for a 12kg cylinder.

A visit to Karwan Bazar in the capital found that the LPG cylinder shortage is less severe than before, with traders reporting a slight uptick in supply compared with last month. Prices there are BDT 300-400 lower per cylinder than in other markets, with various brands selling for BDT 1,500. Tea sellers in Karwan Bazar said they are now buying cylinders for BDT 1,500–1,600, down from BDT 2,000 last month.

Abu Sayed Raza, chief marketing officer of Fresh LPG, told Bonik Barta: “LPG supply has increased. Some 76,000 tonnes have arrived this month [up to February 18]. We expect around 130,000 tonnes to arrive in total this month. There’ll be no more shortage from March. Prices may still be a bit high, but they’ll gradually come down as supply increases.”

Although the domestic market is seeing some respite, fears of a renewed price spike and supply crunch still persist. With international media reporting that the US is planning attacks on Iran, and having deployed an aircraft carrier to the Mediterranean, retaliatory threats from Tehran are ratcheting up tensions. A major escalation across the region could begin at any time.

Most of Bangladesh’s LPG imports come from the Middle East. From there, suppliers use Mediterranean and Middle Eastern routes for shipping. Experts believe that if a war breaks out in that region, Bangladesh’s LPG supply chain could collapse at any moment.