LPG distributors halt supply over fines and pricing disputes

They cite inspections and threats of fines as the reason for supply freeze

Liquefied petroleum gas (LPG) traders have announced a nationwide suspension of cylinder supply and sales in response to ongoing administrative raids and fines.

The LP Gas Traders’ Cooperative Society Limited issued a notice to distributors and retailers on Wednesday evening, confirming that gas collection from all company plants will stop from Thursday until their demands are met.

The decision follows a morning press conference outside the National Press Club, where the organisation issued a 24-hour ultimatum. Leaders called for higher commissions and an immediate halt to fines imposed during nationwide drives targeting overpricing.

The group claimed Bangladesh is facing a severe LPG shortage. According to their data, of nearly 55 million cylinders from 27 companies in the market, only 12.5 million are being refilled regularly. The remaining 42.5 million cylinders remain empty.

Selim Khan, president of the traders’ group, said the high number of empty cylinders has pushed up operational costs for distributors, which he cited as a key reason behind price hikes. He added that many distributors face bankruptcy as several companies have either restricted or fully suspended operations.

Traders are demanding commissions for distributors be raised from Tk 50 to Tk 80, and for retailers from Tk 45 to Tk 75.

During the briefing, leaders accused the Bangladesh Energy Regulatory Commission (BERC) of adjusting LPG prices without consulting distributors.

They argued that rather than resolving the supply crisis, authorities are stoking disputes over pricing and creating panic among businesses through consumer protection raids.

The traders warned that unless BERC coordinates with distributors to set new prices and ends administrative “harassment” and fines, LPG supply and sales will remain suspended indefinitely nationwide.