No possibility of LPG shortage during Ramadan: BERC chairman

Chairman of the  Bangladesh Energy Regulatory Commission (BERC) Jalal Ahmed on Thursday expressed optimism that the country would not face a shortage of liquefied petroleum gas (LPG) during the upcoming Ramadan, citing an expected increase in imports.

“Those who brought in additional imports were not obstructed. Around 150,000 tonnes of LPG are expected to arrive in January. We hope there will be no problem during Ramadan,” Jalal said at a roundtable discussion titled ‘Challenges of Regulating the LPG Market’, organised by the LPG Operators Association of Bangladesh (LOAB) at the CIRDAP auditorium.

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He urged LPG operators to take proactive steps now so that the supply situation does not worsen during the fasting month.

“If 150,000 tonnes arrive in January, the problem will ease significantly. BERC has asked businesses to submit three-month projections for January, February and March. If January’s imports are ensured and February deliveries are confirmed, then we may avoid an LPG shortage during Ramadan,” he said.

LOAB President Mohammed Amirul Haque, however, attributed the ongoing LPG crisis -- persisting for more than 15 days -- to what he described as the government’s lack of response to requests for increasing import limits.

He said LOAB had applied for higher import quotas for five companies -- IGas, Meghna Group, Delta, Omera and Jamuna -- but received no response. He also claimed that LOAB members were not selling LPG at inflated prices.

Rejecting the claim, the BERC chairman said import limits were not a constraint, noting that several companies had already exceeded their approved ceilings.

“IGas, with a limit of 100,000 tonnes, imported 183,000 tonnes. Omera imported 220,000 tonnes against a ceiling of 300,000 tonnes; Meghna brought in 299,000 tonnes against a 250,000-tonne limit; Jamuna Spacetech imported 208,000 tonnes against a 180,000-tonne limit; and Delta LPG imported 80,000 tonnes despite a 60,000-tonne cap,” Jalal said.

“Those who crossed their limits were not stopped. So it does not make sense to blame import limits for the LPG shortage,” he added.

Jalal identified shipment disruptions as the main reason behind the supply crunch, saying geopolitical tensions in the Middle East, particularly surrounding Iran, had negatively affected LPG supply and the domestic market.

He said increased LPG purchases by China had pushed up international prices, while supply chains were further disrupted after many vessels were blacklisted in November and December.

“In November, 184 vessels and 10 companies were sanctioned, and in December another 29 vessels were added to the sanctions list. With Iranian energy exports disrupted, large buyers like China have increased purchases, leaving smaller buyers like Bangladesh with fewer options,” he said.

At present, a 12-kg LPG cylinder -- officially priced at Tk1,306 -- is being sold in the market for Tk2,500 to Tk2,800, while many consumers are unable to obtain gas even after making advance payments.

Expressing frustration, Consumers Association of Bangladesh (CAB) President AHM Shafiquzzaman demanded an investigation to determine where the extra money was going if operators were indeed not charging higher prices.

Meanwhile, Energy and Mineral Resources Division's Joint Secretary AKM Fazlul Hoque said around six million households in Bangladesh currently use LPG, making it an essential commodity.

“The government is in the process of updating the LPG policy, which will include guidelines aimed at addressing existing challenges in the sector,” Fazlul added.