There is currently no legal scope to immediately increase the commission of LPG distributors and retailers in response to the ultimatum issued by traders, said Jalal Ahmed, Chairman of the Bangladesh Energy Regulatory Commission (BERC). He noted that any adjustment to commissions must go through a public hearing, and cannot be made abruptly.
The BERC Chairman explained that distributors are not licensees of the Commission, and therefore BERC has no legal authority to directly entertain their demands. “Any proposal must come from the licensees (importers). Once an application is submitted by the importers, it will be reviewed, followed by a public hearing, after which a decision can be taken. The justification for a commission hike must be proven in the public hearing. There is no scope for a sudden increase in commission,” he said. He added that BERC would hold discussions with LOAB to assess the rationale behind the demands.
On Wednesday (7 January), the LPG Traders’ Cooperative Society announced a six-point demand at a press conference. The demands include increasing distributors’ commission from Tk 50 to Tk 80, retailers’ commission from Tk 45 to Tk 70, stopping police harassment of LPG transport vehicles, and halting ongoing drives by the Directorate of Consumer Rights Protection. The organization warned that if the demands are not met, it will suspend LPG supply and marketing across the country indefinitely from 8 January.
The association’s President Md Selim Khan said Bangladesh is going through a severe LPG crisis, and that the Commission announced new prices without consulting distributors, causing serious hardship for both distributors and consumers. He claimed that no effective steps are being taken to resolve the crisis.
At the press conference, it was stated that around 55 million LPG cylinders have been marketed by 27 companies across the country, while currently gas refilling is taking place in only 12.5 million cylinders, which is far below demand. With many companies ceasing operations, distributors associated with those firms are heading toward bankruptcy, the association claimed.
Over the past few days, reports have emerged of an acute LPG shortage nationwide, with some unscrupulous traders exploiting the situation by charging excessive prices. Although the price of a 12-kg LPG cylinder was fixed at Tk 1,253 in December, it has reportedly been sold in many areas for Tk 1,500 to Tk 2,800. On 4 January, the price was increased from Tk 1,253 to Tk 1,306, and reports suggest that LPG is still being sold at inflated prices in the market.
In response to the crisis, the Ministry of Power, Energy and Mineral Resources said in a statement that LPG imports stood at 105,000 metric tons in November 2025, which increased to 127,000 tonnes in December 2025. “Despite the increase in imports, there is no logical reason for a decline in LPG supply in the market. Adequate stock is available, and the administration has been instructed to take legal action against those creating an artificial crisis,” the ministry said.
Following the ministry’s statement, the LPG Operators Association of Bangladesh (LOAB) also issued a press release, placing the blame for price manipulation on retail sellers and calling for immediate and strict action against those involved.
Subsequently, reports of enforcement drives across the country have surfaced. However, affected consumers claim that the situation has worsened further, as many traders have shut their shops in response to the raids, aggravating the supply crisis.
