Consumers across Bangladesh are paying well above the government-set price for liquefied petroleum gas (LPG), as a recent hike has pushed the cost of a standard 12kg cylinder beyond the reach of many households and small traders.
The Bangladesh Energy Regulatory Commission (BERC) this month raised the price of a 12kg LPG cylinder by Tk212 to Tk1,940. However, customers report buying cylinders for Tk2,100 or more in retail markets, highlighting a persistent gap between official rates and actual selling prices.
Consumers say the repeated price increases, coupled with weak enforcement, are placing mounting pressure on already strained household budgets. “Just a few days ago, the cylinder cost around Tk1,600. Now it’s over Tk2,000. For families like ours, this is simply unaffordable,” said Mohammad Abbas, a resident of Dhaka’s Azimpur area.
Others fear they may soon be priced out of using LPG altogether. “Our monthly income is very limited. If prices stay like this, we may not be able to buy a cylinder next month,” said another consumer, Mohammad Rony.
Small businesses, particularly roadside vendors, are also struggling to absorb the rising costs. Dulal Hossain, a tea seller in Hatirpool, said the increase in LPG prices was eroding already thin profit margins. “We can’t raise the price of our products suddenly, as it would hurt business. But the higher gas cost is cutting into our earnings,” he said.
Retailers attribute the higher-than-official prices to increased transportation costs and supply chain expenses, arguing that they are often forced to procure cylinders from dealers at elevated rates. “Even though a coordinated retail price is supposed to be maintained, we sometimes have to buy cylinders at higher prices ourselves,” said Mohammad Hridoy, an LPG seller in Lakshmibazar.
BERC officials say they are monitoring the market and will take action if irregularities are found. However, such assurances have been made repeatedly in the past, with limited visible impact on market practices.
The latest increase follows a series of sharp adjustments in recent months. The price of a 12kg cylinder stood at Tk1,341 last month before being raised to Tk1,728 in early April, and subsequently to Tk1,940. Despite these official revisions, the market price has consistently remained higher.
LPG prices in Bangladesh are adjusted monthly by BERC, based on international benchmarks. The cost of key components – propane and butane – is determined by Saudi contract prices set by Saudi Aramco, which serve as the baseline for local pricing, alongside exchange rate considerations and import costs.
While state-supplied LPG cylinders remain significantly cheaper — with a 12.5kg unit priced at Tk825 — supply constraints limit their availability. Meanwhile, the price of auto gas used in vehicles has also been raised to Tk89.50 per litre, up from Tk79.77.
The widening disparity between regulated and market prices underscores ongoing challenges in enforcement and market oversight, leaving consumers to bear the brunt of rising energy costs.
