Liquefied petroleum gas (LPG) has been in short supply in Bangladesh for more than a month and a half. As a result, consumers have been paying Tk 500–700 above the official price for a 12kg cylinder, the most widely used size. The price has now been raised by another Tk 223. Last month, it was increased by Tk 212.
The Bangladesh Energy Regulatory Commission (BERC) announced the new price on Monday. The regulator adjusts LPG prices every month.
Last month, BERC set the price of a 12kg cylinder at Tk 1,837. It has now raised the price to Tk 2,060. However, cylinders have been selling for Tk 2,200–2,300 in the market over the past month and a half.
Industry insiders say nearly 10 million consumers use LPG as fuel in Bangladesh. Around 80 per cent of it is used for household cooking, while the rest is consumed by industry and the transport sector.
The private sector accounts for 99 per cent of the LPG market, with companies importing and supplying the fuel. LPG imports have not declined significantly over the past two months, yet market supply has fallen, industry insiders said.
The new LPG price took effect at 6pm on Monday. Cylinders of various sizes are available in the market, and the price has now been set at Tk 171.68 per kilogram.
Based on this rate, prices for LPG cylinders of different sizes will be determined accordingly.
The price of LPG used in vehicles, known as autogas, has been raised from Tk 84.62 to Tk 91.95 per litre.
BERC has been setting LPG prices since April 2021. However, there have been complaints that the fuel is not sold at the official rates. Prices often surge amid claims of supply shortages, and consumers sometimes struggle to obtain LPG even at the higher prices.