Bangladesh’s liquefied petroleum gas (LPG) sector has plunged into severe instability over the past month, with widespread shortages, closed filling stations, and prices soaring beyond consumers’ reach. Despite steady demand growth, supply has sharply declined as several major private companies reduced or halted imports. Officials and industry insiders attribute the crisis to long-term planned decisions and the dominance of a powerful business syndicate, rather than solely to international sanctions or Middle East unrest.

According to official data, LPG demand has increased 25-fold in 15 years, but imports fell from 1.61 million tons in 2024 to 1.47 million tons in 2025. Eight large companies, many linked to the former ruling party, have cut imports over the past 18 months, creating a severe supply gap. U.S. sanctions on Iranian-linked vessels further disrupted shipping, leaving many LPG pumps closed nationwide.

Experts and industry leaders have urged the government to intervene directly in LPG trading to stabilize the market. They argue that with proper monitoring and infrastructure development, the state could regain control within six months and restore order to the energy sector.