An intelligence report has alerted the government to the hoarding of imported liquefied petroleum gas (LPG) by five leading companies.
National Security Intelligence (NSI) in its report submitted to the power, energy and mineral resources ministry on Thursday named Aygaz, Omera, Petromax, BM Energy and Jamuna, alleging that LPG cargo had been withheld since around 22 September.
TIMES could not independently verify the allegations.
The report comes as consumers in many areas in the country are paying more than Tk2,000 for a 12kg LPG cylinder against the Bangladesh Energy Regulatory Commission (BERC)-set September price of Tk1,585.
Import volumes, however, point to no nationwide shortage on supply figures alone.
In the report, the NSI said significant quantities of imported LPG may have been held back instead of being released through the normal supply chain.
Minister Iqbal Hassan Mahmood confirmed receiving the intelligence report.
“We are on it,” he told TIMES on Thursday evening.
The agency cited official data showing about 1.58 lakh tonnes of LPG were imported in September, compared with about 1.57 lakh tonnes in August.
The figures were broadly similar to those cited by the LPG Operators Association of Bangladesh (LOAB) in a notice warning against sales above regulator-fixed prices.
The NSI said the reported withholding warranted immediate investigation, particularly because it coincided with an increase of about $64 a tonne in the market premium from October.
It asked the government to examine whether cargo imported before the premium increase had been deliberately withheld and released only after the adjustment.
Such a practice, if established, could give importers a commercial advantage while restricting available supply and contributing to higher market prices, the report said.
The NSI described the market situation as critical, saying prices were rising beyond levels many downstream businesses could reasonably absorb.
It said the pressure was creating difficulties for businesses and ultimately imposing an additional burden on consumers.
The agency urged the government to determine whether the price escalation reflected genuine supply conditions or inventory holding, delayed cargo releases or other market practices.
It sought an urgent audit of cargo inventories held by major importers from 22 September, including importer-wise data on cargo arrivals, discharge, storage, inventory levels and actual market release dates.
The NSI also asked the authorities to determine how much cargo imported before the October premium increase remained unreleased after the adjustment.
It called for an investigation into whether any importer or other market participant intentionally delayed cargo releases in anticipation of higher premiums or market prices.
The agency further sought an assessment of whether reported inventory levels were consistent with normal commercial requirements and market demand.
It recommended close monitoring of daily import arrivals, inventories and market releases until the market stabilises, along with immediate corrective action if any practice is found to have restricted normal supply or contributed to abnormal price increases.
The NSI also urged the government to ensure adequate imported LPG remains available so that excessive inventory holding cannot create an artificial shortage or distort market supply.
The development comes as LOAB has instructed its member companies, distributors, dealers and retailers to sell LPG at BERC-determined prices.
In a statement on Thursday, LOAB said LPG imports were at a satisfactory level and that September imports were sufficient to meet demand, leaving no scope for an artificial shortage.
The association warned that operators, distributors, dealers or retailers selling cylinders above BERC-set prices or engaging in unauthorised stockpiling would be violating existing laws and could face action.
The government has also moved to strengthen market monitoring.
According to LOAB, the minister instructed deputy commissioners during an online meeting on 30 September to monitor the LPG market.
The association said it would continue cooperating with administrative authorities and law enforcement agencies to protect consumers and maintain market stability.
Omera Petroleum, one of the companies named in the NSI report, denied deliberately withholding cargo or restricting market supply for commercial gain.
“Omera has consistently prioritised security of supply and continuity of LPG availability for Bangladesh,” Omera Petroleum CEO Tanzeem Chowdhury told TIMES.
He said the company had maintained that priority during periods of market volatility and disruption.
A senior executive of another company named in the report, which has a substantial foreign stake, also rejected the allegation.
“Cargo movements are always trackable, and the comments are far from our reality,” the executive told TIMES.
“We can answer any questions from authorities with proper documentation.”
