Bangladesh Bank has eased loan facilities for liquefied petroleum gas (LPG) importers, allowing them to import gas on credit for up to 270 days. The central bank issued a circular on Monday, stating that LPG, usually imported in bulk and later bottled for retail, will now be treated as an industrial raw material for trade credit purposes. This classification enables importers to access the same deferred payment terms available for other industrial raw materials under existing foreign exchange regulations.

According to the circular, banks have been instructed to assist importers in obtaining buyer’s credit from foreign banks and financial institutions. Additionally, offshore banking units have been authorized to provide bill discounting facilities to support the sector. The move aims to address the time-intensive nature of LPG storage, bottling, and distribution processes.

The decision comes amid a supply shortage that has pushed the price of a 12-kilogram LPG cylinder up to 2,500 taka, significantly above the government-fixed rate, causing hardship for consumers and businesses.