LPG traders warn of nationwide supply halt over pricing dispute

Liquefied Petroleum Gas (LPG) traders on Wednesday threatened to suspend LPG supply and marketing across the country from Thursday unless Bangladesh Energy Regulatory Commission (BERC) announces a revised price adjustment within the next 24 hours.

The ultimatum was issued by LPG Traders Cooperative Society Limited during a human chain programme held in front of Jatiya Press Club in the capital.

The demonstration was organised to protest what traders described as ongoing mismanagement and crisis in the LPG sector.

Addressing the gathering, the society’s president Selim Khan said the country is currently facing a severe LPG supply crisis.

He alleged that BERC fixed LPG prices without consulting distributors, creating difficulties for companies, distributors and consumers.

“Instead of resolving the crisis, unnecessary controversy has been created over pricing,” Selim said.

He also claimed that market raids conducted by what he termed an inexperienced Consumer Rights Protection Directorate had caused panic, forcing many traders to suspend operations.

Selim criticised the existing pricing mechanism, noting that although BERC announces LPG prices on a monthly basis, companies adjust prices multiple times, leaving distributors to absorb losses.

He called for the formation of a permanent regulatory committee and demanded increased commissions for distributors and retailers.

According to the organisation, while approximately 55 million LPG cylinders exist nationwide, only about 12.5 million are currently being refilled, leading to a supply gap of nearly 60 percent compared to market demand.

Rising operational costs and the closure of several LPG companies, he added, have pushed many distributors to the brink of bankruptcy.

The traders urged the government to intervene immediately, seeking subsidies for inactive cylinders and policy measures to ensure uninterrupted LPG supply across the country.

Leaders and members of LPG Traders Cooperative Society, along with general traders, participated in the human chain.