LPG Operators’ Assoc urges importers to avoid sourcing from sanctioned origins
It asks benefited importers to disclose pricing
The LPG Operators' Association of Bangladesh has requested its members to refrain from import of LPG from sanctioned sources, origin or entities.
In a letter to its members today, the association further said importers who have benefited from lower premiums should inform the Bangladesh Energy Regulatory Commission (BERC) of their pricing.
This will enable the Commission to take retrospective action, ensuring consumers receive fair pricing from the respective LPG operators, said the letter, signed by the association's President Azam J Chowdhury.
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"As per reports, importers of LPG on board the 'three LPG vessels' in question are paying substantially lower premiums, which are impossible to secure from legitimate, non-sanctioned sources," said the letter.
It mentioned that the import premium of the sanctioned LPG is around $90-$95 per tonne, whereas the consumer prices set by the regulator are based on an import premium of $122.
It also clarified its stance, stating that it will remain vigilant and continue to report any suspicious activities involving vessels or cargoes, in accordance with government guidance and for the nation's benefit.
The Association referenced a 24 January letter from the Bangladesh LPG Distributors and Dealers Welfare Association to the Bangladesh Bank, which raised concerns about the growing presence of sanctioned LPG in Bangladesh and the risks it poses to the economy and consumer safety, particularly regarding off-spec products from Iran.
It highlighted that several multinational companies have made substantial investments in Bangladesh's LPG sector, contributing to Foreign Direct Investment and promoting global best practices within the industry.
The ongoing import of sanctioned or unsafe LPG products could undermine investor confidence in the country's business environment, it warned.
Furthermore, this situation may expose Bangladesh to potential US sanctions, jeopardising the sector's stability and the broader economic interests of the nation, added the letter.
