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Bangladesh's liquefied petroleum gas (LPG) sector stands at a crossroads, with experts warning that weak regulation, reckless profit-seeking and poor safety practices could threaten its long-term sustainability.
At a policy conclave in Dhaka on Saturday, policymakers, regulators, and industry leaders called for stricter oversight, fair pricing, and greater investment in infrastructure to balance economic growth with safety and environmental responsibility.
They underscored the urgent need to protect consumers and strengthen the supply chain as demand for LPG continues to surge.
The half-day event, "LPG in Bangladesh: Economy, Environment and Safety", was organised by Bonik Barta in association with Omera LPG and Eastern Bank PLC at the Pan Pacific Sonargaon Hotel.
Adviser Fouzul Kabir Khan said the interim government would soon launch mobile court drives to stop the illegal sale of LPG cylinders at inflated prices, accusing unscrupulous traders of exploiting consumers.
"A 12kg cylinder should be sold for less than Tk 1,000, but traders are charging Tk 1,400 to Tk 1,500. This irresponsible business must end," he said.
He further blamed some politicians and their business associates for fuelling an artificial energy crisis and warned against excessive profit-making and money laundering.
"Businesses must be responsible. They must move away from the mentality of earning excessive profits, building mountains of wealth, and laundering money abroad," he said.
Khan added that political interference had also distorted the energy landscape. "In many places, gas lines were drawn even though there was no supply. Politicians did it for corruption. We created unnecessary capacity in power generation."
Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed said the country now imports around 1.2 million tonnes of LPG annually, a figure expected to double to 2.5 million tonnes by 2030.
He noted that improved infrastructure, particularly at the Matarbari Terminal, could reduce supply costs and stabilise consumer prices.
"Infrastructure investment and efficient supply chain management are essential to ensure energy security and economic growth," he stressed.
Ahmed added that per capita energy consumption in Bangladesh remains low, while reliance on imported LNG is rising as domestic gas reserves dwindle, making LPG an increasingly critical fuel.
The regulator, he said, is simplifying licensing procedures, enhancing safety supervision, and reviewing administrative costs to ease the burden on consumers.
In his keynote paper, Professor M Tamim projected that LPG demand would rise from the current 1.5 million tonnes to 2.5 million tonnes by 2030, 5.0 million tonnes by 2041, and 10 million tonnes by 2050.
He said 59 per cent of the country's gas is used for power generation, 18 per cent in industries, 11 per cent in households, 6 per cent in fertiliser production, and 5 per cent in CNG.
Fire Service and Civil Defence Director General Brigadier General Muhammad Jahed Kamal revealed that around 580 LPG cylinder accidents and up to 1,600 gas-related fires have occurred so far in 2025, causing property losses worth Tk 200 million.
"Proper training and awareness are essential to reduce accidents. We are ready to support industry operators to enhance safety," he said, urging the inclusion of fire safety education in primary school curricula.
Akij Bashir Group Chief Operating Officer Mohammad Khourshed Alam said the company suffered losses of nearly Tk 3.0 billion in 2021-22 due to gas shortages in ceramic production.
"Gas is oxygen in ceramics. Even a slight pressure drop can cause huge losses," he said, noting that while the company has turned to biomass and LPG as alternatives, "biomass cannot sustain full production capacity."
Eastern Bank PLC Managing Director Ali Reza Iftekhar questioned why LPG receives no subsidies, unlike other gas sectors.
"If subsidies are extended to LPG, household costs will fall significantly," he said, calling for greater efficiency in the supply chain to protect consumers.
BNP leader Dr Abdul Moyeen Khan emphasised that energy security is fundamental to national development and must extend from cities to rural areas.
"Around 65 per cent of our primary energy depends on imports, putting pressure on foreign reserves," he said, adding that LPG - currently just 2.0 per cent of the energy mix - could play a key role in energy diversification with the right investment and policy support.
He also suggested that Bangladesh's high-quality coal reserves could be tapped using modern technology to meet energy needs while minimising environmental harm.
The conclave brought together policymakers, regulators, researchers, and industry leaders to explore policy reforms, investment opportunities, and safety strategies for building a resilient and affordable LPG industry in Bangladesh.
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