Stop rewarding LPG market manipulation

Households are once again being forced to absorb the cost of a poorly regulated energy market. The latest increase in the price of 12-kg LPG cylinders—from Tk 1,585 to Tk 1,837—comes barely two weeks after transport fuel prices were raised by Tk 20 per litre, the second such hike in five months. For ordinary families already struggling with food, transport, and other living costs, such successive hikes are immensely burdensome.

What makes the LPG price increase particularly frustrating is that consumers were paying far above the official rate even before the new price was announced. Cylinders priced officially at Tk 1,585 were reportedly selling for Tk 2,000-2,300. Even after the latest adjustment, some retailers are charging more than Tk 2,200 per cylinder. Industry data show that imports remained broadly normal in August and September. Yet suppliers reportedly began reducing market releases from around September 20, in some cases by more than half. BERC has now sought daily import and supply data from companies to determine whether LPG was being deliberately stockpiled. If hoarding took place, those who may have helped create the shortage stand to benefit, while consumers bear the cost.

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This is precisely why simply raising prices cannot become the default response whenever the market comes under pressure. International LPG prices and shipping costs may indeed rise. But regulators must first establish how much of a price increase is actually justified and whether shortages are genuine. Otherwise, price adjustments only reward market manipulators. There is also the longstanding lack of enforcement. What purpose does an official price serve if consumers routinely cannot buy LPG at that price? BERC has been setting LPG prices since 2021, yet overcharging and periodic supply crises continue. Announcing a rate without ensuring compliance merely creates the appearance of regulation.

The government must urgently identify whether companies deliberately restricted supply, penalise any of those found to be responsible, and ensure that LPG cylinders are sold at the regulated price. It must also strengthen routine monitoring rather than acting only after a crisis erupts. Consumers cannot be expected to keep paying for failures of regulation, enforcement, and market oversight. If official prices are to mean anything, the authorities must make them real in the marketplace.