Tuku Warns of Legal Action as LPG Traders Threaten October 15–16 Strike
The government has warned of strict legal action as LPG traders plan to suspend cylinder sales and supply nationwide on October 15 and 16. The shutdown comes as traders protest alleged harassment and demand higher commissions amid global uncertainty in energy supply.
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In a Nutshell
- LPG traders plan to suspend cylinder sales and supply nationwide on October 15 and 16, following a call by the Bangladesh LPG Traders Co-operative Association.
- Energy Minister Iqbal Hasan Mahmood Tuku warned that the government would take legal action against anyone attempting to enforce a strike over an essential commodity.
- The traders announced the shutdown to protest alleged harassment and demand higher commissions, among other grievances.
- Commerce Minister Khandaker Abdul Muktadir warned businesses against manipulating essential commodity markets, creating artificial shortages or disrupting supply chains to press their demands.
- Tuku said the global energy sector was facing severe challenges due to the ongoing war, with fuel prices fluctuating sharply and supply sources becoming increasingly uncertain.
Context
Energy Minister Iqbal Hasan Mahmood Tuku and Commerce Minister Khandaker Abdul Muktadir issued the warnings after meeting LPG operators at the Secretariat on October 14. Tuku said the government would invoke the Essential Commodities Act, 1956, against those attempting to enforce the shutdown.
"If anyone tries to enforce a strike over an essential commodity at a time like this, we will apply the law enacted in 1956. They cannot call strikes at will to push up prices. This will not be accepted," Tuku told reporters.
He added that the global energy crisis had made fuel supplies increasingly uncertain. "At present, the United States is the only reliable source left, while other sources are uncertain. We are discussing ways to keep prices at a tolerable level for consumers," he said.
Muktadir said disputes over profits, losses and commissions should be resolved through discussions rather than supply disruptions that put consumers in hardship. Senior officials from the Bangladesh Petroleum Corporation, the Bangladesh Energy Regulatory Commission, the Department of Explosives, and leading LPG companies attended the meeting.
Why It Matters
Bangladesh's LPG market is already struggling with high prices amid a disrupted supply chain, with consumers having to pay well above the official rate for cylinders. With 10 million LPG consumers, the country’s annual demand is approximately 1.5–1.6 million tonnes.
On October 4, the Bangladesh Energy Regulatory Commission (BERC) raised the official price of a 12kg cylinder by Tk 252 to Tk 1,837, but consumers are reportedly paying an additional Tk 500–600 in the market. Distributors say they cannot sell cylinders at the official price unless they see an increase in their commissions. On October 8, they requested BERC to raise the commission per cylinder from Tk50 to Tk150.
Traders are also threatening a two-day shutdown in protest against companies that raise prices multiple times a month at their own discretion. They want BERC to monitor and approve any price increases, resume gas refilling for cylinders belonging to companies whose operations have been suspended for a long time, and end what they describe as unreasonable fines imposed by the Directorate of National Consumer Rights Protection.
What We Think
If the shutdown proceeds on October 15 and 16 due to a lack of resolution between traders and BERC, it would disrupt an already fragile supply chain, leaving consumers to bear the consequences of a dispute they have little control over. With LPG prices already well above the official rate, any further disruption would make it even harder for households and businesses to access cooking fuel at a reasonable price.