The liquefied petroleum gas (LPG) sector in Bangladesh is grappling with a severe crisis as the majority of its 30 companies struggle to open Letters of Credit (LCs) for importing essential cooking fuel due to an ongoing dollar crisis. A select few, including Omera, Bashundhara, BM, Uni, Jamuna, and United, are managing to import LPG in large quantities, exacerbating the financial challenges for others.
The dollar shortage, leading to high LC margins and delayed settlements, is causing substantial losses. Companies like Omera are increasing imports to meet demand from industries and automobiles. The situation has led to the sale of some firms, and many others are seeking buyers, reflecting the sector’s financial strain amid increased LPG consumption.
The depreciating Taka is further raising concerns for industries reliant on industrial LPG. The undocumented costs are indirectly impacting consumers, who face additional charges for a 12 Kg cylinder. The industry calls for attention to the financial complexities and seeks resolution amid a challenging economic landscape.
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