Over the past two years, Bangladesh has witnessed a significant decline in liquefied petroleum gas (LPG) consumption, dropping by over 262,991 tonnes. This decline contrasts with previous years of growth, attributed to factors like inflation, a dollar crisis, and challenges in credit card accessibility for LPG purchases. In FY 2022-23, LPG consumption decreased to approximately 12,94,000 tonnes, continuing to drop slightly to around 12,80,600 tonnes in FY 2023-24. The LPG market, valued at Tk 35,000 crore, largely depends on imports, with private operators handling 98% of supply. Factors contributing to reduced consumption include rising fuel costs, prompting users to switch to electric stoves or revert to traditional fuels like wood. Additionally, challenges in import procedures and price regulations by the Bangladesh Energy Regulatory Commission have impacted market dynamics. Despite efforts by operators to stabilize prices with international markets, consumer demand remains subdued due to economic pressures and alternative fuel choices.
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