Price of 12kg LPG cylinder cut by Tk 357

The price of liquefied petroleum gas (LPG) supplied by private companies has been reduced on the consumer level. The price has been cut by Tk 29.76 per kilogram, bringing down the cost of the widely used 12kg LPG cylinder by Tk 357.

Last month, the price was reduced by Tk 55. The new retail price of a 12kg cylinder has been set at Tk 1,528.

The Bangladesh Energy Regulatory Commission (BERC) announced the revised prices today, Thursday. The new rates will take effect from 6:00 pm today. LPG prices have been declining in the global market since the end of the Middle East conflict.

BERC said LPG is available in cylinders of various sizes. The new price has been fixed at Tk 127.30 per kilogram, based on which the prices of cylinders of different capacities will be calculated. Previously, the rate was Tk 157.06 per kilogram.

The regulator revises LPG prices every month. However, LPG is often not sold at the official prices in the market. The 12kg cylinder is the most commonly used for household purposes. There have been complaints that retailers are charging more than the government-approved price for each 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 as auto gas has been set at Tk 70.40 per litre, down from Tk 86.93.

BERC has been fixing LPG prices since April 2021. Propane and butane, the two main components of LPG, are imported from various countries. Every month, Saudi Arabia’s Aramco publishes the prices of these two components, known as the Saudi Contract Price (CP).

BERC uses the Saudi CP as the benchmark to adjust domestic LPG prices. It also calculates the monthly average exchange rate of the US dollar based on the invoice values submitted by importing companies.