BB detects unauthorised LPG import ratios by 3 firms, seeks explanation
According to the central bank, private-sector LPG importers have been bringing in raw materials – propane and butane – in ratios that differ from those approved by the Bangladesh Energy Regulatory Commission (BERC), raising potential safety concerns for consumers
Highlights:
- Bangladesh Bank flags LPG imports with unauthorised propane-butane ratios
- Three companies imported LPG using ratios outside BERC guidelines
- Approved propane ratio is 30–35%, butane 65–70%
- Irregular ratios like 50:50 and 25:75 detected
- Incorrect ratios risk leaks, pressure issues, appliance failure
- No clear rule mandates ratio compliance during import stage
Bangladesh Bank has found that three companies imported liquefied petroleum gas (LPG) using unauthorised propane-butane ratios and has written to the commerce ministry seeking an explanation.
According to the central bank, private-sector LPG importers have been bringing in raw materials – propane and butane – in ratios that differ from those approved by the Bangladesh Energy Regulatory Commission (BERC), raising potential safety concerns for consumers.
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Some importers were found importing LPG raw materials in ratios such as 50:50 and 25:75, which fall outside the proportion set by the regulator.
BERC guidelines issued on 12 August 2021 set the proportion of propane in LPG at 30% to 35%, with the corresponding butane content at 70% to 65% at the consumer level.
Bangladesh Bank detected the irregularities during a scrutiny of LPG import consignments, where at least three private companies were found importing the raw materials in unauthorised ratios.
The central bank said if the propane proportion is not properly maintained – particularly in warm environments – cylinder pressure can rise sharply, increasing the risk of leaks, structural failure and the release of flammable gas.
Conversely, if the proportion of butane is too high, pressure may drop to levels that prevent proper gas flow to burners, resulting in weak flames or appliance failure.
Bangladesh Bank said it raised the issue with the commerce ministry in January this year, seeking clarification on the rationale for importing propane and butane in unauthorised ratios. However, the ministry has not yet responded.
The central bank typically monitors prices and specifications of imported items and identified the irregularities during such reviews.
In a letter, Bangladesh Bank said BERC had set the propane-butane ratio primarily for determining LPG retail prices under the Import Policy Order 2021-2024 regarding LPG and its raw materials.
"It was observed that propane and butane were being imported separately, as well as in mixed form. Different importers were found bringing LPG with varying propane-butane ratios, such as 50:50 and 25:75," the letter said.
However, the document also noted that while BERC specifies a 35:65 propane-butane ratio for retail price determination, there is no explicit obligation to maintain a fixed ratio at the import stage.
Sector insiders said maintaining a balanced propane-butane ratio is essential to ensure pressure stability, efficient combustion and consumer safety across seasonal temperature variations.
