B Mirror Report : Amid the ongoing gas crisis in the country, Bangladesh Bank has eased credit facilities for liquefied petroleum gas (LPG) importers. Under the new arrangement, supplier’s or buyer’s credit facilities will now be available for LPG imports.

The central bank disclosed the decision in a circular issued on Monday (January 12).

Bangladesh Bank explained that LPG is generally imported in bulk quantities and later filled into cylinders for distribution. The processes of storage, cylinder filling and related activities require additional time. Therefore, LPG has been instructed to be treated as an industrial raw material for the purpose of trade credit.

Under the existing foreign exchange regulations, imports of industrial raw materials are eligible for supplier’s or buyer’s credit for up to 270 days. As a result, LPG importers will now be able to enjoy the same credit facility.

The central bank has instructed banks to arrange buyer’s credit from foreign banks and financial institutions. In addition, bill discounting facilities may also be provided through offshore banking units. The move is expected to help LPG importers manage their financial pressure. It has been learned that LPG can now be imported on deferred payment terms for up to 270 days.

Meanwhile, due to supply shortages, LPG prices have increased by Tk 350 to Tk 900, depending on cylinder size. The sale of LPG cylinders at prices higher than the government-fixed rates has caused hardship for consumers and businesses alike, disrupting cooking activities in households as well as hotels and restaurants.