The Bangladesh Energy Regulatory Commission (BERC) has asked 12 LPG importers to submit detailed import and sales data for September as it investigates allegations of supply shortages and the sale of LPG at prices above the regulated rate.

In a letter issued on Saturday (October 3), a public holiday, the commission instructed the companies to submit the information by Sunday (October 4). The letter also referred to September LPG import data obtained from the National Board of Revenue (NBR).

BERC Chairman Jalal Ahmed confirmed the request for the sales data, saying the companies had been asked to submit the information by Sunday. The commission will review the data before deciding on its next course of action, he said.

LPG shortages have been reported in various parts of the country since the third week of September. In many areas, the product has remained unavailable even at higher prices. Allegations have emerged that some importers reduced supplies to create an artificial shortage and sell LPG at inflated prices. Reports from distributors, retailers and intelligence agencies have also raised concerns over illegal stockpiling.

Several companies, including East Coast Group, BM LPG, Petromax and Jamuna Spacetech JV Limited, have come under discussion over allegations of creating an artificial shortage. Against this backdrop, BERC sought import and sales data from all 12 importers.

Industry insiders said sales and stock records alone may not be enough to determine whether manipulation has taken place. They said comparing the data submitted by importers with their bank accounts could help verify the actual volume of sales and whether LPG was sold at inflated prices.

A BERC official, speaking on condition of anonymity, said the submitted information would be scrutinised after it is received. “There is no scope to spare anyone. If evidence of wrongdoing is found against any company, strict action, including cancellation of its licence, will be taken,” the official said.

Meanwhile, despite several meetings over the LPG shortage, there has been no visible improvement in the situation. LPG remains unavailable in many areas. In some places, a 12-kg cylinder, officially priced at Tk 1,585 by BERC, is reportedly being sold for Tk 2,200 to Tk 2,500.

At a meeting with importers on Saturday, they claimed that supplies from their end remained normal. They said any manipulation, if it occurred, could have taken place at the distributor or retail level and called for action against those responsible.

Abu Taher, organisational secretary of the LPG Traders Cooperative Society, said importers had reduced supplies by around 80% since September 20 and allegedly stopped them completely after September 25. He said one of his trucks had been waiting for seven days at Omera LPG’s depot in Ghorashal without receiving gas. Hundreds of other trucks were also reportedly waiting there.

A report by a state intelligence agency said five companies had almost stopped sales from September 22 after observing an upward trend in international LPG prices. The companies allegedly stockpiled thousands of tonnes of LPG for sale at higher prices, according to the report.

The report further said Bangladesh imported 158,000 tonnes of LPG in August and 156,000 tonnes in September. Considering the overall volume of imports, there should not have been a supply shortage in the market, it said.

The LPG Traders Cooperative Society also submitted a written complaint to BERC alleging that LPG was being sold above the commission-set price in September. In the complaint submitted to the BERC chairman on September 21, the organisation said distributors were charging Tk 1,550 to Tk 1,720 for a 12-kg cylinder instead of the fixed price of Tk 1,475.

As a result, retailers were unable to sell the cylinder to consumers at BERC’s fixed price of Tk 1,585, the organisation said.

The complaint, which sought urgent action in view of the situation, was signed by the organisation’s president, Md Selim Khan.

Although allegations of illegal stockpiling have surfaced in reports from distributors, retailers and intelligence agencies, questions remain over the lack of visible and effective action. District administrations have announced plans to conduct mobile courts, but stakeholders said the move has so far had little impact on the market.

Meanwhile, BERC is expected to announce a new LPG price on Sunday (October 4), following an adjustment based on international market prices. Stakeholders said importers were monitoring the situation ahead of the announcement.

According to NBR data, United Group imported the largest volume of LPG in September, at 35,000 tonnes. It was followed by Jamuna LPG with 30,000 tonnes, BM LPG with 21,800 tonnes, Omera with 18,000 tonnes, Petromax with 13,000 tonnes and Fresh LPG with 13,500 tonnes. In total, 12 companies imported 156,000 tonnes of LPG during September.

In 2021, the “minus-one” pricing system was introduced based on recommendations from importers, under which the previous month’s price was used for sales in the following month. However, allegations later emerged that the LPG importers’ association, LOAB, raised prices independently when international prices increased.

After the move created disruption in the market, BERC subsequently began adjusting LPG prices on the first day of each month after receiving the Saudi CP price.

Accordingly, after receiving the new Saudi CP price for October, BERC is expected to announce the new LPG price on Sunday (October 4).