LPG: Price of 12kg cylinder rises by Tk 50

The price of liquefied petroleum gas (LPG), supplied by the private sector, at the consumer-level has increased by Tk 4.21 per kilogram.

For the current month of February, the price of a 12kg LPG cylinder has been fixed at Tk 1,356. In the previous month (January), the price was Tk 1,306. This means the price of a 12kg cylinder has increased by Tk 50 in February. In the previous month, the price had risen by Tk 53.

Bangladesh Energy Regulatory Commission (BERC) chairman Jalal Ahmed announced the new price at a press conference today, Monday. It was stated that the new price would come into effect from 6:00 pm this evening.

The commission fixes LPG prices on a monthly basis. However, LPG is not being sold in the market at the officially determined prices.

The 12kg cylinder is the most commonly used for household purposes. Over the past month, however, an LPG supply shortage has persisted, with sellers charging between Tk 800 and Tk 1,000 extra per cylinder.

Responding to journalists’ questions, BERC chairman Jalal Ahmed said that the issue of higher prices becomes apparent because prices are being fixed. The commission is announcing prices in accordance with the law. Due to reduced supply in the market, LPG is being sold at higher prices. Efforts are under way to increase imports.

According to BERC’s new rates, the price of private-sector LPG, inclusive of value-added tax (VAT), has been set at Tk 113.04 per kilogram. In the previous month, it was Tk 108.83. This means the price has increased by Tk 4.42 per kilogram this month.

Based on this rate, prices for LPG cylinders of various sizes will be determined. LPG cylinders of different sizes are available in the market.

The price of a 12.5kg LPG cylinder supplied by a state-owned company has been kept unchanged at Tk 825. Meanwhile, the price of LPG used as auto gas has been fixed at Tk 62.14 per litre. In the previous month, it was Tk 59.80 per litre.

Since April 2021, BERC has been setting LPG prices. The main components of LPG, propane and butane, are imported from different countries.

Each month, Saudi Arabia’s company Aramco publishes the prices of these two components, known as the Saudi Cargo Price (CP).

BERC adjusts domestic LPG prices based on this Saudi CP as the benchmark price. The commission calculates the average dollar exchange rate for the entire month based on the invoice values of consignments imported by LPG companies.