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The 12kg cylinder, the most commonly used form, has been selling for Tk 2,000 to Tk 2,200 at the retail level since March, when the government-fixed rate was Tk 1,341.

Then on April 2, the Bangladesh Energy Regulatory Commission (BERC) raised the price by Tk 387, or about 29 percent, to Tk 1,728.

As per the latest decision of BERC, the freight and premium charges for importers were recalculated at $250 per tonne, up from $120 in the previous pricing.

The private importers had issued a note of dissent over the pricing, stating their freight costs had spiked beyond $300 per tonne earlier this month. Two meetings were held between stakeholders and the BERC after that, eventually resulting in the new price.

Asked about the basis of the new rate, which is Tk 161.66 per kg, BERC Chairman Jalal Ahmed said the regulator had to consider prevailing offers in the international market, where freight rates were being quoted significantly higher.

“We have confirmed around $250 [per tonne] in freight based on current claims, but there are offers going up to $400 for upcoming shipments,” he said.

Supply risks have intensified, with only about 50,000 tonnes of LPG arriving this month so far.

“It’s a risky situation. Companies are saying they cannot negotiate contracts unless freight is adjusted. Banks are also not opening LCs if contracts exceed the approved freight level. These are practical problems.”

The failure to secure contracts now could lead to supply shortages in May, as imports for the current month have already remained low.

He, however, expressed hope that the retailers would sell LPG at the official price.

The BERC has instructed importers to ensure LPG is sold at the fixed rate through distributors and retailers.

“We depend on district administration and consumer rights bodies for field-level monitoring. We have asked companies to ensure that distributors and retailers sell at the correct price,” he added.

However, M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh (CAB), rejected the basis of the latest hike, alleging that freight costs have been arbitrarily inflated without proper verification.

“It’s all the business people’s interests.”

He cited an earlier assessment by CAB that showed freight costs were much lower than the number quoted by the businesses.

“We presented documents and asked them to verify with NBR records and submissions made to courts, but that was not done. Instead, they took the highest prices quoted by a few companies and took their average.

“The market [price] has been distorted, and the BERC’s role in enabling this is highly questionable,” he said.