Bypassing legally mandated public hearings, Bangladesh’s energy regulator relies entirely on private marketers to fix monthly LPG prices, leaving consumers trapped paying steep, unchecked premiums in direct violation of the law.
The Bangladesh Energy Regulatory Commission (BERC) holds public hearings before fixing all other energy products and services.
Instead, the commission has been announcing prices of Liquified Petroleum Gas (LPG) based on information supplied by LPG marketing companies.
Under this process, consumers not only remain unable to purchase LPG cylinders at the announced prices, but BERC also sets prices higher than those in neighbouring countries.
The very purpose of BERC’s public hearings is to ensure transparency in price determination and protect consumers’ interests.
Before electricity and gas prices are fixed, electricity and gas distribution companies submit proposals. Representatives of the companies, the government, and consumers present their views at the hearings. BERC then determines prices after considering the arguments.
Energy experts say fixing prices without public hearings in this manner violates the BERC Act 2003.
Section 34 of the Act states that the commission must consider consumers’ interests when determining energy tariffs.
The same section also states that the commission must formulate tariff-setting procedures through regulations and determine tariffs after holding hearings with licensees and other stakeholders.
In August 2020, the High Court directed BERC to determine LPG prices through public hearings.
Following the directive, a public hearing was held only once, in April 2021.
BERC now fixes prices every month through a notification, followed by an explanation.
However, this leaves no opportunity to challenge whether the LPG prices and other costs mentioned in the explanation are actually accurate.
Consumers are also denied the opportunity to ask BERC why LPG prices in India are significantly lower than those in Bangladesh, even though India’s LPG market, like Bangladesh’s, depends largely on the private sector.
Asked about the issue by TIMES, BERC Chairman Jalal Ahmed said, “The factors currently considered in determining LPG prices do not require public hearings.”
He argued that the prices currently being determined depend on two or three specific factors.
One is Saudi Aramco’s contract price (CP), over which no one has any control. Another is freight, the cost of transporting goods by ship, and the dollar exchange rate.
Fluctuations in the prices of fuels such as diesel are also taken into account.
He maintained that electricity and gas prices are not adjusted every month and therefore do not require hearings either.
“In the case of electricity prices, it must be remembered that when an application for a licence is submitted, we determine the price for six months or a year, not for every month,” the BERC chairman said.
Meanwhile, no hearing has ever been held to determine fuel oil prices.
Although the government enacted legislation, it did not formulate any regulations in this regard, leaving the authority to make such decisions with the government.
However, M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh (CAB), rejected the BERC chairman’s explanation.
“LPG prices must be determined on the basis of public hearings. BERC has no authority to operate in the manner it is currently operating,” he said.
“Whether variable components change or something else changes, that cannot justify violating the law,” he added.
LPG prices adjusted every month
Since introducing its pricing mechanism in April 2021, BERC has revised private-sector LPG prices every month.
In December 2021, the price of a 12 kg cylinder was fixed at Tk1,221.
In 2022, the price rose from Tk1,178 in January to Tk1,297 in December. In 2023, it increased from Tk1,232 to Tk1,404.
In January 2024, a 12 kg cylinder cost Tk1,433, rising to Tk1,455 by December that year.
In January 2025, the price fell to Tk1,306. By December of the same year, it had declined further to Tk1,253.
The price remained unchanged at Tk1,253 in January 2026.
This October, BERC raised the price of LPG by Tk252 in a single adjustment, fixing it at Tk1,837 for a 12 kg cylinder. The price per kilogramme stood at Tk153.06.
The price increase was attributed to higher Saudi Aramco contract prices for propane and butane in October.
Freight charges, the dollar exchange rate, and diesel prices were also considered in calculating transportation costs.
Why is LPG cheaper in Kolkata?
In Kolkata, India, the unsubsidised price of a 14.2 kg domestic LPG cylinder is ₹968.
At the current exchange rate of Tk1.27 per Indian rupee, a 14.2 kg cylinder in Kolkata costs approximately Tk1,230 in Bangladeshi currency, or around Tk87 per kilogramme.
By contrast, the LPG price in Bangladesh for October stands at Tk153.06 per kilogramme.
This means the price difference is approximately Tk66 per kilogramme.
At the same rate, a 14.2 kg cylinder would cost around Tk2,173 in Bangladesh.
In Bangladesh, however, LPG is never available at the announced price.
There have also been allegations that, since late September, consumers have been charged Tk500 to Tk1,000 more than the officially announced price for a 12 kg cylinder.
India also provides assistance to certain categories of LPG consumers under the Pradhan Mantri Ujjwala Yojana (PMUY).
Launched in 2016, the programme aims to provide deposit-free LPG connections to adult women from poor households.
For the 2025-26 financial year, the Indian government approved a subsidy of ₹300 for each 14.2 kg cylinder for eligible consumers under the programme.
The subsidy applies to a maximum of nine cylinders a year.
However, the benefit is not available to all domestic LPG consumers in India.
Domestic LPG prices in India also depend on fluctuations in international market prices and exchange rates.
A notification issued by the Indian government in September 2026 stated that domestic LPG cylinders were being sold below their actual production and supply costs.
In that month, the indirect subsidy amounted to approximately ₹210 per 14.2 kg cylinder.
Energy expert M Tamim told TIMES that differences in transportation costs, imports and supply chains between Bangladesh and India also contribute to the price gap.
“India’s storage and supply systems are more efficient than Bangladesh’s, including their ability to receive LPG directly from large vessels. Their entire process is far more efficient than ours,” he said.
