LPG prices rise amid gas supply shortage
The price of privately supplied liquefied petroleum gas (LPG) has been increased at the consumer level, even as the country continues to face a shortage of piped natural gas.
The latest adjustment raises the price by Tk 5.85 per kilogram.
As a result, the price of the widely used 12kg LPG cylinder has increased by Tk 70, rising from Tk 1,528 to Tk 1,598.
The Bangladesh Energy Regulatory Commission (BERC) announced the new prices today, Sunday. The revised rates took effect from 6:00 pm on Sunday evening.
Global LPG prices surged after the Middle East war escalated. In April, LPG prices in Bangladesh recorded their largest increase on record. At the beginning of the month, the price of a 12kg cylinder was raised by Tk 387, followed by a further increase of Tk 212 on 19 April.
However, prices were reduced for two consecutive months in June and July. Last month, the price of a 12kg cylinder fell by Tk 357 to Tk 1,528.
BERC said LPG is available in cylinders of various sizes. Under the new pricing, LPG will cost Tk 133.15 per kilogram, compared with the previous rate of Tk 127.30. Prices of cylinders of different sizes will now be calculated on that basis.
The commission reviews LPG prices every month. However, LPG is often sold in the market above the official rate. The 12kg cylinder is the most commonly used for household cooking.
There have been persistent complaints that retailers charge more than the government-approved price. As piped gas shortages continue, many households have increasingly turned to LPG for cooking.
The price of the 12.5kg LPG cylinder supplied by the state-owned company has been kept unchanged at Tk 825. Meanwhile, the price of LPG used as automotive fuel (autogas) has been set at Tk 70.40 per litre. The previous price was Tk 86.93 per litre.
BERC has been regulating LPG prices since April 2021. Propane and butane, the two main components used to produce LPG, are imported from various countries. Every month, Saudi Arabia's Aramco publishes benchmark prices for these two components, known as the Saudi Contract Price (CP).
BERC uses the Saudi CP as the benchmark for determining LPG prices in Bangladesh. The commission also calculates the average exchange rate for the month based on the invoice prices submitted by importing companies.