The government will intensify market monitoring to ensure 12kg liquefied petroleum gas (LPG) cylinders are sold at the fixed Tk1,341 rate, address financing constraints faced by importers and allow Bangladesh Petroleum Corporation to use private storage to boost imports, Commerce Minister Khandaker Abdul Muktadir said on Thursday.
Local administration will strengthen oversight to prevent overpricing, while the government moves to resolve bank single exposure limit barriers and facilitate additional imports through state and private coordination, he said.
The minister spoke at a press briefing after a meeting with LPG importers, suppliers, supporting agencies and the central bank at the Secretariat.
The meeting reviewed supply conditions, storage constraints and financing bottlenecks that have affected imports since December, he said.
Importers raised cost-related concerns and sought a data-based price review.
“Any proposal backed by verifiable information will be considered, but consumer interest must be protected,” he said.
Bangladesh has 33 licensed LPG operators, with around 10 accounting for nearly 70 per cent of total imports.
Some operators became inactive after 5 August 2024, contributing to supply tightness, he said.
He added that many firms depend on the spot market instead of forward contracts, leaving them exposed to global price volatility and shipment disruptions.
Bank single exposure limits have restricted financing capacity for several importers, he said, adding that the government would assist in easing the constraints to ensure smoother imports.
On storage, he said private operators have offered to let Bangladesh Petroleum Corporation use their facilities if it seeks to increase imports to stabilise the market.
LPG Operators Association Senior Vice President Humayun Rashid recently told TIMES of Bangladesh that against monthly demand of 1.3 lakh to 1.5 lakh tonnes, imports stood at 96,000 tonnes in December and rose to around 1.15 lakh tonnes in January.
The shortfall pushed retail prices of 12kg cylinders above Tk2,500 in January, before easing to around Tk1,500 to Tk1,800.
The government has reduced value-added tax to encourage imports and allowed several firms to expand import and bottling capacity.
Commerce Ministry Secretary Mahbubur Rahman attended the meeting.
