Commerce minister threatens fresh crackdown on high LPG prices

The government has announced plans to deploy local administration teams to monitor retail markets following widespread reports that 12kg liquefied petroleum gas (LPG) cylinders are being sold at rates significantly higher than the state-fixed price.

Commerce Minister Khandaker Abdul Muktadir issued the warning on Thursday after a meeting with LPG importers and suppliers at the Secretariat, where he addressed the ongoing supply and pricing crisis.

The Bangladesh Energy Regulatory Commission (BERC) recently set the price for a 12kg cylinder at Tk 1,356.

However, consumers report being charged over Tk 600 above this rate in several areas.

"We have received reports of overcharging at the retail level. Starting tomorrow, we will strengthen monitoring through local administrations to stop these irregularities," the minister said.

The move comes two months after a similar crackdown by the previous interim government led to a retailers' strike, which nearly doubled prices and triggered acute shortages.

Importers had previously promised that supply would stabilise before Ramadan, yet prices remain out of reach for many despite government waivers on duties and VAT.

When asked if prices would return to the regulated levels, Muktadir said, "They will return to where they should be."

However, he noted that importers have requested a "price review" due to international market volatility.

"If their data justifies it, we must consider it. No one will run a business at a loss," he added, though he clarified that no decision to hike prices has been made yet.

Addressing the supply gap, the minister noted that many of the 33 licensed companies became inactive after the political change on Aug 5, 2024.

"Of the 33, only 10 currently handle about 70 per cent of imports. Some operators limited their activities due to market uncertainty and banking 'single exposure limits' which hinder large-scale imports. We are working to resolve these bottlenecks," he said.

Muktadir also welcomed an offer from private importers to allow the Bangladesh Petroleum Corporation (BPC) to use their storage facilities if the state-run entity decides to import LPG directly to bolster reserves.