B Mirror Report : The Energy and Mineral Resources Division has formally requested Bangladesh Bank to take immediate steps to provide loans to LPG entrepreneurs and ensure faster, priority based settlement of applications for opening letters of credit (LCs) to stabilize LPG supply in the market.
In a letter sent on Thursday (January 8) to the Governor of Bangladesh Bank, the ministry urged the central bank to instruct commercial banks to expedite loan approvals and LC processing for LPG imports. The letter was signed by Deputy Secretary Mia Mohammad Qeyamuddin of the Energy and Mineral Resources Division.
The development was confirmed by Amirul Haque, President of the LPG Operators Association of Bangladesh (LOAB). He said LOAB had earlier requested the government to declare the LPG sector a green industry during a meeting with the ministry. Following that meeting, the ministry moved to seek policy support from Bangladesh Bank.
According to the letter, around 98 percent of Bangladesh’s LPG demand is met through imports by private companies, with most of the fuel used for household consumption and industrial purposes. Typically, LPG prices rise during this period due to reduced global and domestic supply. In addition, demand for LPG increases in winter as pipeline natural gas supply declines.
The ministry noted that these factors have led to an acute shortage of LPG in the market, affecting public life. Several media reports have recently highlighted the severity of the crisis.
To address the situation, the letter recommends treating LPG as a green fuel and prioritizing loan approvals and LC opening applications for LPG imports at commercial banks. It also suggests that recognizing LPG as a green industry would allow entrepreneurs to access low-interest financing from Bangladesh Bank’s Green Fund, helping resolve the sector’s financial constraints.
The ministry emphasized that ensuring easy and timely access to credit would help normalize LPG supply and enable consumers to purchase LPG at government-fixed prices. It concluded by requesting Bangladesh Bank to take necessary measures to implement the decisions taken at the meeting with LOAB leaders and safeguard uninterrupted LPG supply in the market.
