80 percent of LPG being imported from the US
Representational image.
Due to the ongoing war in the Middle East, major changes have occurred in LPG (liquefied petroleum gas) imports. Instead of the Middle East, nearly 80 percent of the country's total demand is being met by imported gas from the United States.
The price of U.S. gas is higher and ship fares are also higher while transporting the fuel into the country. And, this is what has increased the price of LP gas in Bangladesh.
The LPG Operators Association of Bangladesh (LOAB) sent a press release to the media today, Thursday, analyzing the reasons for the increase in LPG prices. This information was learned from there. The release presented their own analysis of the price increase.
LOAB said that a war situation is currently ongoing in the Middle East. Commercial ship movement through the Strait of Hormuz and the Bab-el-Mandeb route is being severely disrupted. Many old supply contracts have been canceled. In this situation, ensuring energy security was a big challenge. Therefore, the government took a farsighted step before the war began. LPG imports from the US began. As a result, it has been possible to keep gas supply normal in the country even amid the global crisis.
But the major negative aspect of bringing gas from the US is the cost. The sea route from the US to Bangladesh is much longer compared to the Middle East. There is also a severe global shortage of specialized gas-carrying ships. As a result, international ship fares (freight charges) have increased 3 to 4 times more than normal. Added to this is the high price in the international market.
LOAB said that 80 percent of LPG prices depend on the international market. Domestic costs, including VAT-tax, transport, and profit, amount to only 20 percent. In the international market, the price of raw gas materials has increased by 21 percent over the past year. In 2025, the Saudi CP (Contract Price) averaged 552 dollars. At this time in 2026, it has risen to 666 dollars. In November, the average price of gas stood at 759 dollars. As a result, where LPG was Tk 113 per kg in February, in November it reached Tk 171.68. Alongside this, the value of the taka against the dollar has depreciated by 3 percent, increasing import costs further.
Many people compare the price of LPG in India with that of Bangladesh. LOAB has also provided a clear explanation for this. In India, the government provides massive financial support for LPG. In the 2025-26 fiscal year, the Indian government is providing about 30,000 crore rupees, or 3.1 billion dollars, in subsidies for LPG. There is no such subsidy in Bangladesh. Alongside subsidies, infrastructure differences are also a major factor. India has deep-sea ports. Large ships can dock there directly. It takes only 3-4 days to unload gas. On the other hand, because Bangladesh lacks sufficient draft, lightering has to be done with small ships in the deep sea. This takes about 25 days. Due to this extra time, a large ship incurs an additional cost of about 4 million dollars in 20 days at 200,000 dollars per day! This huge cost is directly imposed on consumers. Besides, half of India's total gas demand is produced in their own refineries.
What is the way out of this crisis? LOAB says that if a land terminal is built in Maheshkhali, LPG prices will decrease somewhat. However, they are keeping a strict watch to ensure that ordinary people are not harassed. LOAB has instructed that LPG be sold at government-fixed prices. The organization has strongly demanded that the administration take immediate and exemplary legal action against any dishonest group or retailer that charges higher prices.Meanwhile, on November 2, the Bangladesh Energy Regulatory Commission (BERC) increased the price of liquefied petroleum gas (LPG). The price of a 12 kg LPG cylinder at the consumer level was increased by Tk 223 and set at Tk 2,060.In the previous month as well, the price of LPG had been increased by a significant amount. In September, the price of a 12 kg LPG cylinder was Tk 1,585. In October, BERC increased the price by Tk 252 and set it at Tk 1,837.
