The Ministry of Commerce (MoC) has sought detailed opinions and an urgent action plan from relevant authorities to introduce subsidised liquefied petroleum gas (LPG) cylinders for low-income rural households amid an ongoing shortage of the cooking fuel in the domestic market.
The ministry recently asked the state-run Trading Corporation of Bangladesh (TCB) to provide its views after the Prime Minister approved the initiative to supply LPG cylinders to economically disadvantaged rural households at subsidised prices, a TCB source said.
Earlier, the Cabinet Division sent a letter to the concerned ministries and departments, instructing them to take a coordinated initiative to support household cooking and improve fuel safety in rural areas.
The Commerce Ministry has been asked to prepare an urgent action plan, with the programme to be implemented through TCB's dealer network.
Large sections of the rural population still rely heavily on firewood, straw and kerosene for cooking, exposing households to health and environmental risks. Subsidised LPG could improve access to cleaner cooking fuel and reduce the health burden, particularly for women who typically handle household cooking.
However, the Cabinet Division's letter does not specify a mechanism for identifying "economically disadvantaged" households, raising concerns about potential favouritism and corruption, which have been alleged in previous TCB distribution programmes.
TCB's dealer network has traditionally handled staple commodities rather than safety-sensitive products such as LPG cylinders.
"Whether the dealers have the technical capacity and training to handle LPG cylinders safely remains an open question," a senior official of the Energy and Mineral Resources Division said.
Despite describing the matter as urgent, the Cabinet Division's letter sets no deadline for submitting the action plan, potentially delaying implementation, said an official, requesting anonymity.
Bangladesh's experience with subsidy-based distribution programmes has been mixed, with TCB's open-market sales repeatedly facing complaints over long queues, dealer manipulation and supply shortages.
LPG also carries significant safety risks if cylinders are mishandled or are substandard, the official said.
Energy experts cautioned that subsidised distribution alone cannot resolve broader supply constraints, particularly when the country is already facing a domestic LPG shortage.
They said seeking feedback from multiple agencies during an active supply crunch could prolong inter-ministerial coordination and delay implementation without addressing underlying supply constraints.
Private-sector LPG cylinders often cost nearly twice the government-set price or even more. Although the Bangladesh Energy Regulatory Commission (BERC) fixes monthly retail prices, consumers frequently pay higher rates as retailers charge additional amounts.
Over the past seven years, national LPG consumption has more than doubled to over 1.5 million tonnes, with households accounting for around 80 per cent of total demand.
Monthly demand currently stands at about 130,000 tonnes, while private suppliers meet around 98 per cent of the country's LPG demand and government initiatives cover the remaining 2 per cent.
Several South Asian countries, including India and Pakistan, have introduced targeted LPG subsidy programmes to expand access to clean cooking fuel among low-income households.
India operates a large-scale scheme providing LPG connections to poor families, along with a direct benefit transfer (DBT) system that sends subsidies directly to beneficiaries' bank accounts to reduce leakages.
Pakistan has also used seasonal programmes to provide discounted LPG cylinders to vulnerable communities in remote areas.
The proposed initiative in Bangladesh is aimed at improving rural living standards while advancing public health and environmental objectives.
Consumers, however, say the gap between official and market prices remains a major concern.
"We are suffering greatly as consumers. We have to buy a 12kg LPG cylinder for Tk 2,200-2,500 instead of the government-set price. We have never been able to buy LPG at the government-set price," one consumer said.
They also alleged that syndicates were driving up LPG prices despite repeated complaints, while no effective action had been taken against them.
