It depends on where the business sits in the chain. An importer and bottler typically needs BERC licences for import, storage, bottling and marketing, Department of Explosives licences for storage and cylinder filling, environmental clearance, fire safety approval, factory and trade licences, and import registration. A distributor or dealer handling filled cylinders needs its own trade licence and, above specified quantities, a storage licence from the Department of Explosives, and may need BERC registration or licensing depending on the activity. We prepare a tailored licence map for each LPG distribution business model before investment begins.

BERC licenses energy businesses, including those that import, store, bottle, market and distribute LPG, and sets licence conditions on matters such as safety, reporting and service. Since 2021, BERC has also determined consumer prices for LPG on a periodic basis, following a court direction, and operators must comply with those price orders. BERC can inspect licensees, impose penalties and hear disputes involving licensees and consumers. We advise on licence applications, submissions in price proceedings and compliance with BERC orders across the LPG distribution chain. Price compliance is a frequent inspection focus, so we monitor each new order.

Small retailers holding a limited number of filled cylinders may be exempt from a storage licence, but above the quantities specified in the applicable rules a licence from the Department of Explosives is required, along with conditions on premises, ventilation, distances and fire safety. A trade licence from the local authority is also needed. Thresholds and conditions should be checked against the current rules for each site. Operators that supply retailers should require evidence of compliance in their dealer agreements, since unsafe storage by dealers can cause serious accidents and reputational harm to the brand.

A filling station generally needs a licence from the Department of Explosives for storage and dispensing of petroleum, approval of its layout and equipment, environmental clearance, fire safety approval, land and building permissions and a trade licence. Many stations operate as dealers of state-owned marketing companies under dealership agreements. Autogas stations require approvals for LPG storage and dispensing, and conversion workshops have their own requirements. Road and highway authorities may also be involved for some roadside sites. We help investors and dealers obtain approvals and negotiate dealership terms. Station sites need careful title due diligence.

Yes. Foreign investment in LPG import, storage, bottling and distribution is generally permitted, and several operators have foreign shareholders or partners. The investor must register with Invest Bangladesh, comply with Bangladesh Bank rules on capital inflows, loans and repatriation, and ensure that the operating company holds or obtains all sector licences. Acquisitions of existing operators require careful due diligence, as licences may be subject to approval on change of ownership, and larger deals may need merger clearance from the Bangladesh Competition Commission. We advise on structuring, approvals and transaction documents. Timing of approvals often drives the deal timetable.

Cylinders must meet approved design standards, and their import, manufacture, filling, testing and requalification are regulated under the gas cylinder and LP gas rules administered by the Department of Explosives. Operators must keep records of cylinders, test them at prescribed intervals, remove defective cylinders from use and train staff and dealers. Accidents involving cylinders can lead to criminal investigation, licence action and compensation claims. We help operators review their safety compliance, cylinder management procedures and contractual arrangements with dealers, and advise immediately after incidents on evidence, cooperation with authorities and liability. Training records are often examined.

BERC price determinations follow a public process, and operators can make submissions before an order is issued. After an order is made, the legislation provides for review in certain circumstances, and decisions may be challenged in the High Court Division by writ petition where there are grounds such as lack of authority, procedural unfairness or irrationality. Courts generally give weight to the regulator's expertise. A challenge needs a strong legal basis and evidence, and it may affect the operator's regulatory relationship. We advise on submissions, review applications and litigation strategy. Timing of any challenge is important.

A distribution agreement should cover territory and exclusivity, supply volumes and forecasting, pricing mechanisms that reflect regulated prices, credit and security, cylinder ownership, deposits and exchange, branding, safety and storage obligations, record-keeping, insurance, compliance with BERC and Department of Explosives requirements, termination rights and dispute resolution. Exclusivity and resale price clauses should be reviewed for competition law risk. Clear allocation of responsibility for accidents and regulatory breaches is essential. We draft agreements that work commercially and remain defensible if the regulator or a court examines them. We also review existing LPG distribution agreements against new regulatory orders.