Consumers and small businesses struggle as retailers cite higher procurement costs and limited supplies
Consumers in Bangladesh are being forced to pay Tk 400–500 more than the government-fixed price for a 12kg liquefied petroleum gas (LPG) cylinder, amid repeated price hikes and supply shortages, adding to the financial burden on households and small businesses.
The Bangladesh Energy Regulatory Commission (BERC) raised the price of a 12kg LPG cylinder by Tk 223 to Tk 2,060 on Monday (November 2). The new rate came into effect at 8pm the same day. Earlier, on October 4, the price had been increased by Tk 252.
Prices of all LPG cylinders, ranging from 5kg to 45kg, were also revised upward.
However, consumers say cylinders remain unavailable at the official rate, with many having to pay between Tk 2,400 and Tk 2,500 in the retail market.
During visits to Mirpur’s sections 2 and 6 and Agargaon in the capital on Tuesday, consumers and retailers described mounting difficulties caused by rising prices and irregular supplies.
Ahmed Sohel, a resident of Khilgaon who uses a 12kg cylinder every month for his family of three, said he had previously paid Tk 2,200–2,300 even when the government-set price was around Tk 1,800.
He expressed concern that the latest increase would push his monthly cooking fuel expenses even higher.
Small business owners are also struggling to cope with the rising costs.
Mohammad Shahidul Islam, who runs a hotel in Mirpur-2, said he previously bought 12kg cylinders for Tk 2,100–2,150 when the official price was around Tk 1,850.
His hotel uses two cylinders for preparing roti and paratha, consuming two cylinders every three days.He said rising LPG and flour prices had made it increasingly difficult to continue selling parathas at Tk 10 each. He may have to raise prices or eventually shut down the business if costs continue to increase.
Fakhruddin, a tea seller in Agargaon, said he recently purchased a 12kg cylinder for Tk 2,300, which lasts between 11 and 13 days. He expects retailers to charge around Tk 2,500 following the latest price adjustment.
He said increasing the price of tea could drive customers away, leaving him with little choice but to absorb the additional fuel costs through sales of other products.
Retailers, meanwhile, blame higher procurement costs and supply shortages for selling cylinders above the official rate.
Mohammad Mamun, a LPG retailer at Safowan Enterprise in Mirpur-6, said he currently sells cylinders from several brands, including Petromax, Uni Gas and iGas.
According to him, a 12kg refill of Uni Gas costs Tk 2,500, while Petromax and iGas refills cost around Tk 2,300.
He said purchasing a cylinder itself costs him around Tk 2,300, leaving little room for profit after transportation and other expenses. Retailers generally aim for a margin of Tk 100–150 per cylinder.
Mamun also pointed to difficulties arising from shortages of cylinders and differences in brand-specific bottles, which cannot always be exchanged between companies.
He said disputes with customers over prices had become increasingly common, making the business difficult to sustain.
With repeated price increases, supply constraints and retail prices exceeding official rates, both household consumers and small entrepreneurs are facing growing pressure from the rising cost of cooking fuel.
COMMENTS