12kg LPG cylinder price jumps by Tk 387 at one go

The price of privately supplied liquefied petroleum gas (LPG) at the consumer level has been increased by Tk 32.30 per kg in April, raising the cost of the widely used 12kg cylinder to Tk 1,728 from Tk 1,341 last month, marking a hike of Tk 387 per cylinder.

The Bangladesh Energy Regulatory Commission (BERC) announced the revised prices today, Thursday, effective from 6:00 pm today.

Earlier, at the beginning of February, the price of a 12kg LPG cylinder was set at Tk 1,356. Following a reduction in import duty, the price was adjusted on 24 February, lowering it by Tk 15 to Tk 1,341.

According to BERC, LPG cylinders of various sizes are available in the market, and the price has now been set at Tk 144.04 per kg. Prices of cylinders of different sizes will be determined based on this rate.

The regulatory body revises LPG prices every month. However, LPG is often not sold at the government-fixed rate in the market. The 12kg cylinder is the most commonly used for household purposes, and there are allegations that retailers are charging Tk 300 to Tk 400 more per cylinder.

The price of the 12.5kg LPG cylinder supplied by state-owned companies remains unchanged at Tk 825. Meanwhile, the price of LPG used in vehicles (autogas) has been set at Tk 79.77 per litre, up from Tk 61.83.

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

Every month, Saudi company Aramco publishes the prices of these two components, known as the Saudi Contract Price (CP).

BERC determines domestic LPG prices based on this Saudi CP as the benchmark. It also calculates the average dollar exchange rate for the month based on importers’ invoice values.