Bangladesh Bank (BB) has relaxed import rules for liquefied petroleum gas (LPG) in an effort to ease the ongoing supply crisis and stabilise the domestic market.
The move is intended to reduce financing pressure on importers and ensure smoother availability of bottled gas for households and businesses struggling with soaring prices and shortages.
Under a new market intervention measure, the central bank has allowed LPG imports under suppliers' or buyers' credit, enabling deferred payments and greater flexibility in financing.
The decision comes as both pipeline gas and LPG supplies remain constrained, disrupting daily cooking needs and commercial operations.
In a circular issued on Monday, the banking regulator said LPG imports would be eligible for usance terms of up to 270 days.
Prices of LPG cylinders have risen sharply, depending on size, amid limited availability, hitting consumers and businesses alike.
BB noted that LPG is imported in bulk and subsequently bottled in cylinders for domestic use, a process that requires additional time for storage, bottling and other operational activities.
In view of these operational realities, the central bank said LPG should be treated as an industrial raw material for trade credit purposes.
Under existing foreign exchange regulations, imports of industrial raw materials are allowed under suppliers' or buyers' credit for a usance period of up to 270 days, or the cash conversion cycle, whichever is shorter.
In addition to supplier credit, BB advised banks to arrange buyers' credit facilities from overseas banks and financial institutions.
Banks may also facilitate bill discounting through the offshore banking units of scheduled banks in Bangladesh, subject to compliance with prevailing foreign exchange regulations and prudential credit norms.
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