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The gap between regulated pricing and the actual market selling price has widened in recent years, putting additional pressure on household budgets and small businesses.
The recent price hike has also started to impact restaurant owners, many of whom are considering raising food prices or have already made small adjustments due to rising cooking fuel costs.
Some restaurant owners said they are under pressure to increase the prices of food items further if LPG prices continue to stay high in the coming weeks, as their operating costs have already increased.
On April 19, the Bangladesh Energy Regulatory Commission (BERC) announced the latest adjustment, increasing the price of a widely used 12kg LPG cylinder by Tk 212 to Tk 1,940 from the previous Tk 1,728.
In just 18 days, the price of a 12kg LPG cylinder has jumped by Tk 599, reflecting an unusually sharp rise within a short span and intensifying pressure on consumers.
On April 2, the price was first increased by Tk 387, bringing the rate to Tk 1,728.
On April 19, the price was increased by another Tk 212, bringing the current retail price to Tk 1,940.
Data from the National Board of Revenue (NBR) shows that total imports for the 2025 calendar year stood at over 1.42 million tonnes, averaging about 118,622 tonnes per month.
During spot visits to several LPG shops and restaurants in the capital, this correspondent found that traders were selling 12-kg LPG cylinders at Tk 2,100 to Tk 2,300, which is higher than the government-fixed price.
Kalam, a retailer in the Mirbagh area of the capital, said he is now selling 12-kg cylinders at Tk 2,100-Tk 2,200, depending on the companies.
He said he did not know the reasons why the prices are higher than the government-fixed rate.
Kalam said he has to buy at higher prices from dealers, so he has to sell at a profit.
Shiraj, a licensed LPG dealer in the capital’s Badda area, said he is now selling 12-kg LPG cylinders of brands other than Omera at the government-fixed rate, with the total price reaching around Tk 2,000 after adding delivery charges.
He claimed that he is the only licensed LPG dealer in the area, while more than 30 retailers are selling cylinders at higher prices. “Many of them do not even have licences or trade licences,” he said.
“There are no regulations or guidelines for retailers, so they are selling at higher prices than the government-fixed rate,” Shiraj added. He alleged that he did not receive proper memos or purchase documents from companies while buying cylinders.
According to him, he purchases cylinders from different companies at around Tk 1,800 to Tk 1,900, excluding brands such as Beximco and Bashundhara Group, whose LPG prices are comparatively higher than some other companies.
Nur Uddin, owner of Nusrat Ghoroa Khaber, said he recently bought a 12-kg LPG cylinder at Tk 2,200 following the latest price hike.
He said most of the customers at his restaurant are working-class and lower middle-class people.
Although the government increased LPG prices, he has not raised the prices of food items, as many of his customers cannot afford higher costs.
“If I increase the prices, many customers may stop coming to my restaurant,” he said, adding that he is currently trying to keep prices unchanged despite rising operational costs.
Meanwhile, Abul Kawser Chowdhury, a director of GFC restaurant, said he had to buy some 12-kg LPG cylinders on May 3 at Tk 2,300 as he had no alternative.
He said the prices of some food items, including fish and ruti, have already increased by Tk 5 to Tk 10 after the recent LPG price hike.
“We have increased prices only slightly so far. But if the current trend continues, we may have to raise prices further, as the costs of LPG and other essentials have already gone up,” Chowdhury added.
Mohammed Amirul Haque, managing director of Delta LPG Limited and president of the LPG Operators Association of Bangladesh, said there are now only around 10 to 12 active operators in the country’s LPG market.
“Nobody will show any document that they are buying LPG at prices higher than the government-fixed rate,” he said. He said the sector is still facing supply chain disruptions due to the ongoing US-Israel war involving Iran and global market volatility.
According to him, LPG imports have increased, but not at the expected level because of supply chain troubles and higher international costs.
“A strong market mechanism is crucial for ensuring stability, competition and an uninterrupted energy supply,” said Shafiqul Alam, lead analyst for energy for Bangladesh at the Institute for Energy Economics and Financial Analysis.
He stressed the need for strict market monitoring, as LPG is often being sold at prices higher than the government-fixed rate, creating additional financial pressure on consumers.
According to him, the government may consider providing subsidies to low-income households for the first LPG cylinder of the month to make it affordable for them.
Source: https://thefinancialexpress.com.bd/trade/lpg-prices-overshoot-official-rates-straining-consumers
