Government plans subsidised LPG cylinders for low-income rural households

The government has taken a policy decision in principle to provide subsidised liquefied petroleum gas (LPG) cylinders to low-income households in rural and marginalised areas, aiming to expand access to clean energy, reduce reliance on traditional cooking fuels and protect public health.

The decision was made at a meeting chaired by Prime Minister Tarique Rahman on July 9, officials said.

The Ministry of Power, Energy and Mineral Resources has been directed to coordinate with relevant agencies to formulate and implement the initiative, which officials expect to launch soon.

Energy experts and industry stakeholders have welcomed the move, saying it could improve energy security for poor households while supporting rural development, environmental conservation and public health.

Shafiqul Alam, Bangladesh Lead Energy Analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), described the initiative as a positive step, pointing to India's experience with a similar programme. However, he suggested that poor families living in urban slums in Dhaka and other cities should also be included.

He also stressed the importance of creating an accurate database to identify genuine beneficiaries and establishing a strong monitoring system to prevent subsidised cylinders from being diverted for commercial use or sold on the black market.

Millions of rural households in Bangladesh continue to depend on firewood, crop residues and cow dung for cooking. This contributes to deforestation and exposes women and children to harmful indoor air pollution, increasing the risk of serious respiratory illnesses.

While some relatively affluent rural families have shifted to LPG, many low-income households cannot afford regular use because of the high cost of cylinders.

LPG is widely used in Bangladesh for household cooking, industrial activities, commercial operations and as vehicle fuel, commonly known as autogas.

Over the past seven years, national LPG consumption has more than doubled to over 1.5 million tonnes, with households accounting for around 80 per cent of total use. Average monthly demand currently stands at approximately 130,000 tonnes.

Private companies supply nearly 98 per cent of Bangladesh's LPG, while the government accounts for only around 2 per cent.

The government sells a 12.5kg LPG cylinder for Tk825, a price that has remained unchanged for an extended period. However, government-supplied cylinders are available in limited quantities and are inaccessible to most consumers.

Private-sector cylinders often cost nearly twice as much or even more. Although the Bangladesh Energy Regulatory Commission (BERC) announces a monthly retail price, consumers frequently pay above the official rate as retailers impose additional charges.

Several South Asian countries have introduced targeted LPG subsidy programmes to expand access to clean cooking fuel among low-income households.

India operates one of the world's largest subsidised LPG programmes, providing free LPG connections, including cylinders and regulators, to millions of families living below the poverty line. Its Direct Benefit Transfer (DBT) system allows consumers to purchase LPG at the market price while receiving the subsidy directly in their bank accounts, helping reduce corruption and black-market activities.

Pakistan has also introduced temporary programmes to provide subsidised LPG cylinders to low-income households in remote areas, particularly during winter.

Officials believe Bangladesh's proposed initiative could significantly expand access to clean cooking fuel, improve living standards in rural communities and advance the country's broader environmental and public health objectives.