Crucial LPG Imports Delayed for Seven Months
Bangladesh Petroleum Corporation (BPC) has not imported any liquefied petroleum gas (LPG) in the past seven months. This delay happens despite the government’s plan to directly bring in LPG. The government wants to reduce Bangladesh’s reliance on private companies for this important fuel. Private businesses control nearly all of the country’s LPG market.
Currently, the government accounts for only 1.33 percent of the LPG market. The private sector manages the remaining supply. BPC started the initiative in January to import LPG for the first time. This was to allow the government to help during supply shortages.
Over these seven months, BPC invited bids five times. However, no company offered an acceptable price to supply the gas. BPC then decided to buy 5,000 tonnes of LPG directly. This method avoids the regular bidding process.
A company named Speed Marketing Corporation won the contract. They will supply LPG worth about Tk 450 million. The company recently paid the required security money. However, BPC is still unsure when the gas will actually arrive in Bangladesh. BPC officials said the company must open a letter of credit for the import.
BPC Chairman Md Manzur Alam Pradhan said the import process is ongoing. He mentioned discussions with two companies. He added that imports should begin soon. BPC also plans to build LPG plants in Chattogram and Mongla. These plants will increase the country’s LPG capacity.
The use of LPG as cooking fuel has grown quickly since 2015. That year, the government stopped new residential gas connections. Today, Bangladesh uses about 1.5 to 1.6 million tonnes of LPG each year. Most of this supply comes from private companies.
Professor M Shamsul Alam, an energy advisor, believes BPC must act faster. He said importing LPG only once will not make a difference. He wants BPC to regularly import LPG. He also stressed the need for BPC to build its own storage and bottling facilities. This would strengthen the government’s role in the market.
