Dhaka: Power and Energy Adviser Muhammad Fouzul Kabir Khan today dismissed any claims of a supply shortage as the cause behind the reported disruption in liquefied petroleum gas (LPG) cylinder availability. He attributed the situation to market manipulation rather than issues with imports or production.
According to Bangladesh Sangbad Sangstha, the adviser clarified that about 98 percent of the LPG business in Bangladesh is managed by the private sector, while government involvement is minimal at two percent, focusing on the import and bottling of propane and butane. After attending a meeting on the Advisers Council Committee on Government Purchase at the Bangladesh Secretariat, Fouzul emphasized that the recent price hike and scarcity were due to “collusion and deliberate manoeuvring” by wholesalers and retailers.
Fouzul pointed to market manipulation by some private operators exploiting a price revision as the root of the issue. He assured consumers that the government would continue to monitor the situation and take necessary steps to prevent further manipulation of the LPG market. Regulatory authority over LPG pricing primarily rests with the Bangladesh Energy Regulatory Commission (BERC), he added.
The adviser mentioned that the government held discussions, including the Energy Secretary and the BERC chairman, to assess the situation, followed by talks between the Energy Secretary and the LPG Operators Association of Bangladesh. He stated that LPG imports have increased compared to the previous month, making a genuine supply shortage unlikely, and blamed certain operators for withholding supply in anticipation of higher prices after BERC’s recent adjustment.
Fouzul highlighted the abnormal increase in LPG prices by more than Taka 50 per cylinder, driven by collusion rather than natural market forces. To address the situation, the government has implemented enforcement measures nationwide. Mobile courts have been deployed to prevent hoarding, forced shutdowns, and artificial supply disruptions. The Cabinet Secretary directed district administrations to take firm action, while the law and order committee, involving police and other agencies, discussed the issue.
Monitoring teams from the energy division have been dispatched to Chattogram, the main hub for LPG imports and bottling, and similar inspections are underway in Dhaka and other areas. Fouzul expressed confidence that this was a temporary situation and expected prices and supply to normalize gradually.
He also mentioned potential global shipping challenges due to sanctions on certain vessels, although these have not impacted LPG supply this month. Fouzul assured that future risks are being closely monitored.
Punitive actions have been taken, with fines imposed by mobile courts run by district administrations, police, and the Directorate of National Consumer Rights Protection. Authorities have moved to reopen outlets where sales were intentionally halted. Defending BERC’s role, the adviser noted that the commission ensures transparency and stakeholder participation in pricing decisions, with no arbitrary government interference.
On the broader gas situation, he confirmed that Bangladesh has adequate domestic gas production and is importing liquefied natural gas (LNG) as planned, even in higher volumes. Seasonal pressure on gas pipelines during winter was cited as a technical issue but not a supply failure.