Make LPG affordable for users

Its increased use can reduce the ongoing gas crisis
Its increased use can reduce the ongoing gas crisis

At a time when the country has been facing a severe gas crisis, it is worth reiterating that liquefied petroleum gas (LPG) has the potential to act as an alternative energy source. Admittedly, our natural gas reserves are limited, and although the government has taken some measures to increase local gas production, they have not yielded much result. Therefore, while domestic gas production has decreased, dependence on imported liquefied natural gas (LNG) has increased for electricity generation, in the industrial sector, and for household use. However, there are also limitations in LNG imports due to infrastructural weaknesses, making it difficult to supply gas as per demand. Against this backdrop, LPG can be a viable alternative to meet our gas needs.

According to experts, LPG is a highly competitive energy source compared to the price and availability of other fuels. Due to its cost-effectiveness, cleaner burning, ease of transportation, and secure supply, its industrial use has increased in recent years. At present, only 12 percent of total LPG is used for industrial and commercial purposes, while around 80 percent is used in households. However, given the ongoing crisis in piped gas supply, if LPG use can be promoted in industries, they can have a smoother supply of energy. Up until now, the LPG sector has grown on its own, without any subsidy. Sector operators have pointed out many barriers facing the industry, such as high licence fees (Tk 1 crore per year), difficulty in company registration, and the absence of pipelines to ensure smooth supply.

Moreover, the entire LPG sector is currently controlled by private companies, which is why the price of LPG remains high. At present, a 12-kg cylinder is sold for more than Tk 1,200, which should be below Tk 1,000, as our energy adviser has recently suggested. Moreover, illegal selling of LPG cylinders and refilling smaller cylinders from larger ones (a likely cause of accidents) remain rampant. These issues need to be addressed to promote LPG use.

We urge the government to ensure fair pricing of LPG through proper policy support and infrastructure development for import and distribution. Energy experts have also raised concerns over unsafe practices, which caused 580 accidents in 2025. LPG operators must therefore maintain safety and transparency in their operations. The Bangladesh Energy Regulatory Commission (BERC) should also play the role expected of it: better regulate prices, and properly investigate complaints against operators. With the country's LPG demand projected to rise by 60 percent within the next five years, effective government policies are essential to make LPG affordable to consumers.