Dhaka, Jan 8 (V7N) — The supply and sale of liquefied petroleum gas (LPG) cylinders have been suspended across the country, causing widespread suffering among consumers, even as the government has moved to reduce value-added tax (VAT) on LPG imports and domestic production to stabilize prices.

The Ministry of Power, Energy and Mineral Resources on Thursday sent a letter to the National Board of Revenue (NBR), recommending a reduction in VAT on LPG. According to the proposal, VAT on imported LPG would be reduced from 15 percent to 10 percent, while VAT at the local production level would be brought down to 7.5 percent.

The Energy and Mineral Resources Department took the initiative following discussions with the LPG Operators Association of Bangladesh. Officials said the primary objective of the proposed tax reduction is to lower consumer prices and ensure a stable supply of fuel in the domestic market.

Sources said the proposed tariff restructuring could have a direct positive impact on the cost of living of consumers by easing the price burden of cooking gas.

However, amid an abnormal rise in LPG prices, traders have already stopped the supply and sale of LPG cylinders nationwide. Since Thursday morning, LPG cylinders have not been available at retail outlets across the country, creating severe hardship for households and businesses alike.

While some hotels and restaurants have resorted to alternative cooking methods, many households are unable to operate their stoves. Consumers have expressed frustration, saying they have effectively become hostages to the ongoing crisis.

The situation has raised concerns about energy security and market stability, as consumers await swift government intervention to resolve the supply disruption and normalize LPG prices.

END/SMA/AJ