About LPG:

Liquefied petroleum gas (LPG), is a flammable mixture of hydrocarbon gases, most commonly propane, butane, and propylene. However, the latter two typically comprise 5% or less of the mixture.

LPG is used as fuel gas in heating appliances, cooking equipment, and vehicles. It is increasingly used as an aerosol propellant and a refrigerant, replacing chlorofluorocarbons in an effort to reduce damage to the ozone layer. When specifically used as a vehicle fuel it is often referred to as autogas.

LPG Market Overview

The current demand for LPG in Bangladesh stands at around 1 million tons of which there is a supply of about 825,000 tons. Almost 95% of the supplies are imported making the sector completely dependent on the foreign market.

LPG is considered the clean & affordable alternatives to natural piped gas. With more & more households & industries coming up, it is almost certain that the growth trajectory of the LPG demand will continue to be upward. Besides households, the demand for LPG in the automobile industry is also increasing. The complete stoppage of new piped gas connections to households in 2010 has kickstarted the demand for LPG. Not only it is more convenient, but it’s more secure & the supply is stable as well. The limit of the piped gas is within the metropolitan & municipal areas only with the regular gas shortage. Compared to that, LPG has a much more stable supply within an affordable price structure.



LPG is used for cooking in Bangladesh for economic reasons, for convenience, or because it is the preferred fuel source. After the stoppage of new piped gas lines, the LPG is being widely used as a means of cooking. 

Motor Fuel

When LPG is used to fuel internal combustion engines, it is often referred to as autogas or auto propane. In some countries, it has been used since the 1940s as a petrol alternative for spark-ignition engines. LPG has a lower energy density per liter than either petrol or fuel oil, so the equivalent fuel consumption is higher. Many governments impose less tax on LPG than on petrol or fuel-oil, which helps offset the greater consumption of LPG than of petrol or fuel-oil. In Bangladesh, LPG is an emerging substitute for petrol & CNG.


Conversion to gasoline

LPG can be converted into alkylating which is a premium gasoline blending stock because it has exceptional anti-knock properties and gives clean burning.