Bangladesh Bank (BB) has identified irregularities in liquefied petroleum gas (LPG) imports by some private companies, finding that they brought in propane and butane in ratios not aligned with regulatory guidelines, and has sought an explanation from the government.
According to the central bank, the firms imported LPG using proportions of propane and butane that differ from those set by the Bangladesh Energy Regulatory Commission (BERC), raising concerns over safety and efficiency.
BERC guidelines issued in August 2021 recommend that LPG at the consumer level should contain 30 to 35 per cent propane and 65 to 70 per cent butane. However, the BB found instances where importers used ratios such as 50:50 and 25:75, which fall outside the recommended range.
The irregularities came to light during routine scrutiny of LPG import consignments, part of the central bank’s oversight of import pricing and specifications. Officials warned that improper ratios could pose risks depending on environmental conditions.
A higher proportion of propane may increase cylinder pressure in warmer temperatures, potentially leading to leaks or structural damage. On the other hand, excessive butane can reduce pressure, affecting gas flow and causing weak flames or malfunctioning appliances.
Bangladesh Bank said it had written to the commerce ministry in January seeking clarification on why such unauthorised ratios were being used, but no response has yet been received.
The central bank also noted that while BERC sets the propane-butane ratio primarily for retail price determination under the Import Policy Order 2021–2024, there is no strict requirement mandating the same ratio at the import stage.
Industry experts say maintaining a balanced mix is crucial to ensure safe usage, stable pressure and efficient performance of LPG across different weather conditions.
