The price of liquefied petroleum gas (LPG) supplied by the private sector has increased at the consumer level. This time, the price has risen by Tk 21 per kilogramme.
As a result, the price of the most widely used 12kg LPG cylinder has increased by Tk 252, taking the new price to Tk 1,837 from Tk 1,585. The price had fallen by Tk 13 last month.
The Bangladesh Energy Regulatory Commission (BERC) announced the new price today, Sunday. The new price will take effect from 6:00 pm today. LPG prices rose in the wake of the outbreak of war in the Middle East.
Following the start of a ceasefire, LPG prices began to decline on the international market. Prices had fluctuated over the past two months, but a significant surge has occurred again this month.
However, LPG supply in the market has remained below demand for the past three weeks. As a result, there have been allegations that 12kg LPG cylinders are being sold at Tk 500 to Tk 800 above the official price.
Earlier, LPG prices on the international market rose after the war spread across the Middle East. In April, the country recorded its highest-ever increase in LPG prices.
At the beginning of April, the price of a 12kg LPG cylinder was increased by Tk 387. It was raised by another Tk 212 on 19 April. However, prices fell for two consecutive months in June and July.
According to BERC, LPG cylinders of various sizes are available in the market. From now on, the price of LPG will be Tk 153.06 per kilogramme. The prices of LPG cylinders of different sizes will be determined accordingly. Previously, the price was Tk 132.12 per kilogramme.
The commission determines LPG prices every month. However, LPG is not being sold in the market at the officially set prices. The 12kg LPG cylinder is the most widely used for household purposes.
There have been allegations that LPG sellers are charging customers more than the official price for each cylinder. Many people are turning to LPG cylinders for cooking at home amid the gas shortage.
The price of 12.5kg LPG cylinders supplied by state-owned companies has been kept unchanged at Tk 825. Meanwhile, the price of LPG used in vehicles, known as auto gas, has been set at Tk 84.62 per litre. Previously, it was Tk 73.09 per litre.
BERC has been setting LPG prices since April 2021. Propane and butane, the main components used to produce LPG, are imported from various countries. Every month, Saudi Arabian company Aramco publishes the prices of these two LPG components. This is known as the Saudi Contract Price (CP).
BERC adjusts LPG prices in Bangladesh based on this Saudi CP as the benchmark price. The commission calculates the average US dollar exchange rate for the entire month based on the invoice prices submitted by importing companies.