29th October 2026

DHAKA, October 29, 2026 — Liquefied petroleum gas (LPG) importers and the Bangladesh Energy Regulatory Commission (BERC) faced strong criticism at a public hearing on proposed changes to LPG distribution costs and commissions, as consumers complained that cylinders remained unavailable at officially fixed prices.

 

The hearing, chaired by BERC Chairman Jalal Ahmed at the BIAM Auditorium on Thursday, heard demands from importers, distributors and retailers for higher commissions. Consumer representatives, however, questioned the regulator’s effectiveness in enforcing official prices amid persistent market irregularities.

 

Importers proposed raising their commission on a 12kg LPG cylinder from Tk200 to between Tk300 and Tk478. Omera proposed Tk478, Petromax Tk349, Delta Tk360 and Meghna Group Tk300. Distributors sought an increase from Tk50 to Tk150, while retailers proposed raising their commission from Tk45 to Tk70 per cylinder.

 

BERC’s technical committee recommended increasing the importers’ commission to Tk280 per 12kg cylinder, alongside higher payments for distributors and retailers. If the recommendations are approved, the official price of a 12kg cylinder could rise from Tk1,837 to Tk1,976.

 

The committee also proposed revising several operational charges. It recommended increasing the storage, bottling and transportation charge from Tk16.74 to Tk23.48 per kilogram, the distributor charge from Tk4.17 to Tk6.67, and the retailer charge from Tk3.75 to Tk5.83 per kilogram. Under the proposed structure, the retail-point price would rise from Tk153.06 to Tk164.68 per kilogram.

 

Consumer Association of Bangladesh (CAB) adviser Khalilur Rahman said BERC must prioritize consumer interests when considering price adjustments. He called for sales at officially announced prices and questioned the rationale for increasing prices without ensuring market discipline.

 

Abu Taher Qureshi, organizing secretary of the distributors’ association, said suppliers often suspended deliveries during shortages, leaving distributors with additional costs that made sales at regulated prices difficult. He argued that transportation expenses should be properly accounted for in the pricing structure.

 

In response, the technical committee said transportation costs varied according to delivery distances and should be reflected at the importers’ level.

 

Abu Sayeed Raza, chief financial officer of Meghna Fresh LPG, said the country’s LPG sector had attracted around Tk40,000 crore in investment. He argued that the cost of transporting LPG from large vessels at Kutubdia through lighter vessels and road networks to different parts of the country had not been adequately reflected in the previous pricing review.

 

He also proposed accounting for bank loan interest of 15% and a 30% return on equity, while suggesting higher commissions for distributors and retailers.

 

Meanwhile, Anik Kumar Sen, chief operating officer of Orion LPG, said several companies were unable to import LPG, affecting the supply of cylinders already in the market. He suggested that ensuring supplies through companies currently importing LPG could help ease the shortage.

 

The latest dispute comes amid rising international LPG prices since September. Although BERC raised the official price of a 12kg cylinder by Tk252 to Tk1,837 in October, consumers have reportedly been paying between Tk2,200 and Tk2,500 in the retail market.

 

BERC Chairman Jalal Ahmed said the commission would strengthen market monitoring and take action against attempts to create artificial shortages. He added that software was being developed to support closer monitoring of the market.

 

Participants have been asked to submit any further written comments by November 1. The commission will consider the proposals before making a final decision on the revised cost and commission structure.


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