The price of privately supplied liquefied petroleum gas (LPG) at the consumer level has been increased for the second time in a month. This time, the price has risen by Tk 17.62 per kilogram.
Earlier, at the beginning of April, it had increased by Tk 32.30. As a result, the new price of the widely used 12kg LPG cylinder has risen from Tk 1,728 to Tk 1,940 - an increase of Tk 212.
The new price was announced today, Sunday, by the Bangladesh Energy Regulatory Commission (BERC). It will come into effect from 6:00 pm today, Sunday.
Last month, the price of a 12kg LPG cylinder was Tk 1,341. At the beginning of April, the price was increased by Tk 387 to Tk 1,728. The latest adjustment has been made due to a rise in shipping costs caused by the war.
BERC said that LPG cylinders of various sizes are available in the market. From now on, the price of LPG has been set at Tk 161.66 per kg, and the prices of cylinders of different sizes will be determined accordingly.
The commission sets LPG prices every month. However, LPG is not being sold in the market at the fixed rates. The 12kg LPG cylinder is most commonly used for household purposes. There are allegations that retailers are charging higher prices per cylinder.
The price of the 12.5kg LPG cylinder supplied by the state-owned company has remained unchanged at Tk 825. Meanwhile, the price of LPG used in vehicles (autogas) has been set at Tk 89.50 per litre, up from Tk 79.77.
BERC has been fixing LPG prices since April 2021. The main components of LPG—propane and butane—are imported from various countries. Each month, Saudi company Aramco publishes the prices of these two components, known as the Saudi Contract Price (CP).
Based on this Saudi CP as the benchmark, BERC adjusts LPG prices in the country. The commission calculates the average dollar exchange rate for the month based on the invoice prices of importing companies.