Cooking gas demand drops by 40%
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Saturday
January 28, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
SATURDAY, JANUARY 28, 2023
Cooking gas demand drops by 40%

Energy

Eyamin Sajid
20 April, 2020, 11:20 pm
Last modified: 21 April, 2020, 11:46 am

Related News

  • Gas from Bhola to add to national grid by next month
  • Gas found in Bhola North-2 well
  • Nigeria seeks to overturn $11 billion damages bill over failed gas project
  • Qatar, UAE energy ministers say gas will be needed for long time
  • Pay gas, electricity production costs to get smooth supply: PM Hasina tells industries

Cooking gas demand drops by 40%

Dealers and retailers in the sector have been hit the hardest as their fixed costs remain the same

Eyamin Sajid
20 April, 2020, 11:20 pm
Last modified: 21 April, 2020, 11:46 am
Representational Image. Photo: Collected
Representational Image. Photo: Collected

The demand for liquefied petroleum gas (LPG), a popular cooking fuel in urban areas, dropped by up to 40 percent within the past one month due to the ongoing countrywide shutdown imposed to combat the spread of the novel coronavirus.

Bashundhara LPG, one of the leading brands with 25 percent of the market share, now has around 40 percent lower demand for its product. 

Zakaria Jalal, general manager of Bashundhara LPG, said they would usually sell 20,000 tonnes of LPG in a month. However, in the last one month, the demand dropped to 8,000 tonnes. 

"The main reason for this situation is the shutdown of restaurants and other commercial activities," said Zakaria, adding "Consumption in the domestic sector has also dropped as some families moved to their rural hometowns."

Dealers and retailers in the sector have been hit the hardest as their fixed costs remain the same. They are now afraid of a complete collapse of their business if the situation continues for a few more months. 

Prior to the Covid-19 outbreak in Bangladesh, the demand for LPG was 2,700 tonnes per day and 80,000 tonnes in a month, according to sources. 

But consumption has decreased to 1,500 tonnes in a day as major businesses remain closed. In urban areas, restaurants usually consume around 15-20 percent of the total LPG demand. 

Mohammad Arif, a retailer at Karwan Bazar, said earlier, he used to sell 60 to 70 LPG cylinders in a week; that number has now dropped to only five or six. 

Like Arif, other LPG cylinder distributors are likely to suffer financially in the upcoming months as shop rent and other maintenance costs still need to be paid. 

Besides the dealers and retailers, some new investors in the sector will also suffer from this. Some of them will have trouble repaying bank loans which they had endorsed for investment, said officials at different LPG companies. 

"There will be a certain effect on the investors, which is unavoidable. However, it will be better for us if we could find out the best way to cope with the situation intelligently," said Shamsul Haque Ahmed, CEO of Omera LPG. 

"We have to find out if there is an opportunity for us in the stimulus package announced by the government," he added.

Currently, 20 percent of the total population in Bangladesh is using LPG gas for cooking, and the total number of users is around 40 lakh. The sector has a capacity of supplying 2 million tonnes of cooking gas annually.  

In urban areas, a little more than 46.5 percent of the households have access to either pipelined or bottled gas, whereas only 5.8 percent households have this facility in rural areas.

Bangladesh / Economy / Top News

Gas

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • How will Bangladesh pay for massive upcoming power projects this year?
    How will Bangladesh pay for massive upcoming power projects this year?
  •  Gautam Adani, center.Photographer: Tomohiro Ohsumi/Bloomberg
    What really worries Indians about Adani's empire
  • Representational image. A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. REUTERS/Issei Kato
    Bangladesh seeks spot LNG cargo for first time in 8 months

MOST VIEWED

  • How will Bangladesh pay for massive upcoming power projects this year?
    How will Bangladesh pay for massive upcoming power projects this year?
  • Representational image. A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. REUTERS/Issei Kato
    Bangladesh seeks spot LNG cargo for first time in 8 months
  • Photo: Collected
    8 Ctg power plants out of production
  • Photo: Bloomberg
    FBCCI seeks PM's directives on not increasing gas price over 57%
  • Private power producers for more fuel oil-based electricity to cut outage
    Private power producers for more fuel oil-based electricity to cut outage
  • Power supply to be ensured during irrigation season: Nasrul
    Power supply to be ensured during irrigation season: Nasrul

Related News

  • Gas from Bhola to add to national grid by next month
  • Gas found in Bhola North-2 well
  • Nigeria seeks to overturn $11 billion damages bill over failed gas project
  • Qatar, UAE energy ministers say gas will be needed for long time
  • Pay gas, electricity production costs to get smooth supply: PM Hasina tells industries

Features

Sketch:TBS

Why we need consumer education for consumer wellbeing

12h | Thoughts
Dr Ahsan H Mansur, Executive Director, Policy Research Institute. Illustration: TBS

Twin shocks call for stronger domestic policy response

13h | Thoughts
December-er shohor, taxi taken for airport and the Park Street bathed in lights. Photo: Jannatul Naym Pieal

Exploring Kolkata on foot, empowered by Google Maps

13h | Explorer
Island hopping in Bangladesh?

Island hopping in Bangladesh?

15h | Panorama

More Videos from TBS

Kajol’s road paintings bring change in Gafargaon

Kajol’s road paintings bring change in Gafargaon

1d | TBS Stories
Carew & Company witnessed a remarkable growth

Carew & Company witnessed a remarkable growth

1d | TBS Stories
Gavi may have to leave Camp Nou

Gavi may have to leave Camp Nou

2h | TBS SPORTS
After all the controversies, how is Shah Rukh Khan's ‘Pathaan’?

After all the controversies, how is Shah Rukh Khan's ‘Pathaan’?

4h | TBS Entertainment

Most Read

1
Picture: Collected
Bangladesh

US Embassy condemns recent incidents of visa fraud

2
Four top bankers arrested in DSA case filed by S Alam group 
Bangladesh

Four top bankers arrested in DSA case filed by S Alam group 

3
Illustration: TBS
Banking

16 banks at risk of capital shortfall if top 3 borrowers default

4
Photo: Collected
Splash

Hansal Mehta responds as Twitter user calls him 'shameless' for making Faraaz

5
A frozen Beyond Burger plant-based patty. Photographer: AKIRA for Bloomberg Businessweek
Bloomberg Special

Fake meat was supposed to save the world. It became just another fad

6
Representational Image
Banking

Cash-strapped Islami, Al-Arafah and National turn to Sonali Bank for costly fund

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]