Ten major liquefied petroleum gas (LPG) operators in Bangladesh have vehemently denied allegations of importing LPG from sanctioned countries, terming it an attempt to destabilize the domestic market.

Under the banner of LPG Operators of Bangladesh, the companies, including Fresh LPG of Meghna Group, Delta LPG of TK Group, Energypac, Unitex, Navana, Orion, BM Energy, JMI, Jamuna Spacetech, on October 16 sent a letter to the advisor in energy, urging action on the issue.

They say a letter from Bangladesh LPG Operators Association president Azam Chowdhury regarding the importation of LPG from a sanctioned country is agenda-driven. They claim the letter was intended to control the market.

Azam, who is also the chairman of East Coast Group, submitted letters to the Bangladesh Bank governor and the Chattogram Port Authority on September 29 and October 6 respectively, raising allegations regarding the importation of LPG from of sanctioned countries.

The letter alleged that the LPG was being imported illegally from Iran, which is subject to Western sanctions. In a recent letter to the port president, it was requested to stop the unloading of LPG from tankers Captain Nicholas and Gas GMS and to conduct an investigation.

However, due to a lack of evidence to support the allegations, customs and port authorities took no action, according to officials familiar with the matter. LPG is currently being unloaded from these two vessels, they told TBS.

Meanwhile, in the letter addressed to the energy advisor, the 10 operators on behalf of the owners of the Bangladesh LPG industry expressed their deep concern over the various allegations made by Azam, owner of Omera LPG. They said his accusations created instability in the LPG industry and posed a threat of monopolistic influence in the market.

The letter said Bangladesh’s LPG industry strictly adheres to all international and national import and operating regulations. It ensures that no sector entity is involved in transactions with sanctioned states, organizations or vessels.

LPG imports are carried out using letters of credit (LC) issued by listed banks, which ensures compliance with national and international banking regulations, as well as thorough verification of import documents to secure shipment goods and financial transactions, the letter states.

The ten companies signing the letter claim to supply 80% of the country’s LPG and further state that they view Omera LPG’s attempts to monopolize the market over the past 6-7 years as a threat to the energy sector. They point out that any disruption in the market of essential products like LPG will have a negative impact on employment, investments, normal supply of goods and lead to a rise in market prices, ultimately affecting the economy.

Although Azm identified Merano Petrochemicals of the United Arab Emirates as the company importing LPG from the sanctioned country, the 10 companies claim that Omera Petroleum Limited also imported goods from the same supplier. They describe Azam’s letter as a case of business rivalry.

Azm said LPG imports from the supplier should have been stopped long ago. Azam told TBS: “As soon as we found out that this company was on the sanctions list, we stopped all transactions with it.

In the letter, the 10 operators also accuse Omera of money laundering due to excessive fuel imports.

They said 85% of the country’s LPG is imported from the Middle East, with a premium price of $90 to $100 per tonne. However, the price of LPG imported by Omera is higher than $115-125 per tonne, they say.

The operators claim that due to overcharging, Omera is importing in the name of its company, MJL Singapore, thereby facilitating further money laundering.

Azam told TBS: “We declare the prices at which we import. Therefore, there is no possibility of money laundering. If other companies import at lower prices, they should also declare it.”