The government has allowed the Bangladesh Petroleum Corporation (BPC) to import liquefied petroleum gas through government-to-government deals amid a nationwide shortage of cooking gas cylinders and a sharp rise in prices.
The situation is being attributed to supply shortages and the authorities believe this move by the government would ease the crisis.
But a number of BPC officials said this would unlikely to bring relief anytime soon. Because, the corporation currently lacks the specialised lighterage vessels and dedicated jetties needed to transport the liquefied petroleum gas (LPG).
Because of these logistical constraints, imports cannot begin immediately, according to a number of BPC officials.
Until now, LPG imports have been handled mainly by the private sector.
According to the current arrangement, BPC is allowed to import only bulk LPG -- gas brought in large tanks or vessels -- which private operators later bottle at their own terminals before selling it in the market.
BPC will supply LPG only to approved private operators and will not be involved in bottling or retail sales.
Market insiders say weak market management and poor oversight have also contributed to the current gas cylinder crisis, but these issues are being overlooked as the authorities rush to boost supply.
“We have several infrastructural limitations, as we have never imported this type of LPG before,” a BPC official said on condition of anonymity.
“Even if we import LPG, we will not sell it directly to consumers. The same private players who currently dominate the market will handle distribution, meaning they can still influence supply and prices,” he added.
PERMISSION GRANTED, BUT CONDITIONS APPLY
According to BPC sources, the corporation first sought permission to import LPG on January 10. The energy ministry gave verbal consent on January 18, followed by written approval on Tuesday.
The approval letter, addressed to BPC Chairman Md Amin Ul Ahsan and signed by Shahina Akhter, senior assistant secretary of the Energy and Mineral Resources Division, allows LPG imports under specific conditions.
These require BPC to consult the LPG Operators Association of Bangladesh (LOAB) to finalise operators, import volumes, payment arrangements, and plans for unloading and distribution, with the ministry granting final approval.
On Tuesday, Energy Adviser Muhammad Fouzul Kabir Khan told The Daily Star that imports must be increased if the government wants to keep the country’s LPG market under control.
“The government’s involvement in the sector would make market monitoring easier, as we would be able to regularly oversee sales and ensure fair pricing,” he said.
He added that BPC officials are already reviewing potential sources for government-to-government imports and expressed hope that the crisis would be resolved soon.
Mani Lal Das, general manager (commercial and operations) at BPC, told The Daily Star that initial discussions would focus on suppliers in Indonesia, Qatar and the United Arab Emirates, countries from which Bangladesh already imports other petroleum products.
“We are preparing to send emails to these companies and will move ahead with those that can offer competitive prices, flexible terms and quick delivery,” he said.
Acknowledging logistical challenges for BPC’s first LPG imports, he said LPG cargoes usually arrive at the outer anchorage near Kutubdia and must be transferred to specialised lighterage vessels for unloading.
“However, we do not have such vessels or jetties,” he added.
To address the issue, Das said BPC is considering importing LPG in smaller consignments of 5,000 to 7,000 tonnes or working with suppliers that can provide three specialised lighterage vessels.
“One vessel would serve the Khulna-Daulatdia route, while two would be used in the Chattogram zone,” he added.
He expressed hope, saying discussions with potential suppliers are ongoing and that a final decision is expected within days.
However, a member of BPC’s procurement committee, speaking on condition of anonymity, said the entire process could take at least two months.
SUPPLY NOT THE MAIN ISSUE
Meanwhile, market data suggest that supply constraints are not caused by imports.
Over the past three years, LPG imports steadily increased: 12.23 lakh tonnes in 2023, 14.42 lakh tonnes in 2024, and 14.65 lakh tonnes in 2025, totalling 41.3 lakh tonnes.
In the last six months of 2025, imports rose 18 percent compared with the first half of the year, while average import costs fell 14 percent -- from Tk 87 per kg to about Tk 75 per kg, according to National Board of Revenue data. Most of the 14.65 lakh tonnes imported in 2025 arrived during this period.
Despite stable imports and lower costs, LPG prices remain high, raising concerns about artificial shortages. Retail prices are still much higher than government-set rates. In January, the government raised the price of a 12kg LPG cylinder by Tk 53 to Tk 1,306, but in Dhaka and Chattogram, it is selling for Tk 1,750 to Tk 2,100 -- Tk 400 to Tk 750 above the official rate.
Nazer Hossain, vice-president of the Consumers Association of Bangladesh, said the issue is not the volume of imports but poor market management.
“Over the past six months, LPG imports have risen, and average import costs have fallen, yet prices have increased, creating an artificial shortage,” he said.
“If the government imports LPG only to hand it over to the same suppliers, the crisis will not end. Alongside imports, distribution and market monitoring must be strengthened,” he added.
BPC officials also said that 98-99 percent of the LPG market is controlled by the private sector, limiting the government’s ability to intervene effectively. While 25 companies import LPG, just four dominate, accounting for 57 percent of total imports.
According to NBR data, Omera Petroleum Limited has the largest share at 17.96 percent, followed by Meghna Fresh LPG Ltd at 16.24 percent. Jamuna Spacetech Joint Venture and United Aygaz LPG Ltd control 12.38 percent and 9.11 percent, respectively.
