The Bangladesh LPG Operators Association (LOAB) has claimed that the price of liquefied petroleum gas (LPG) in the country has increased due to a rise in global prices and shipping costs following the spread of conflict in the Middle East. The association stated that nearly 80% of the price of a 12 kg LPG cylinder is spent on import-related expenses.
In a statement issued on Wednesday explaining the recent price hike, LOAB said the remaining 20% of the LPG price covers VAT and taxes, cylinder filling, local transportation, profit margins, and commissions for distributors and retailers.
Global Prices and Currency Impact
According to LOAB's explanation, the price of LPG raw materials on the global market has increased by approximately 21% over the past year. During the same period, the value of the Bangladeshi taka has depreciated against the US dollar. In addition to the rise in international LPG prices, the conflict in the Middle East has disrupted supply chains, leading to higher shipping costs and adding further pressure on import expenses.Context of Inflation
The country has been experiencing high inflation for more than four years. As incomes and wages have not kept pace with inflation, the real income of a large segment of the population has declined. The situation has been further aggravated by the Middle East conflict that began in February. The poverty rate has risen alarmingly, and the number of people facing severe food insecurity has increased significantly.In this context, reports of reduced distribution of food grains such as rice and wheat, despite adequate reserves, raise concerns about the government's policy priorities. The explanation regarding the LPG price hike comes at a time when consumers are already under significant financial strain from rising energy costs.
