Private companies’ 12-kg LPG to be costlier

BERC
File photo

The Bangladesh Energy Regulatory Commission (BERC) has re-fixed the price of liquefied petroleum gas (LPG) of private companies at retail level effective from 1 July.

As per the new price, the private companies will have to sell 12-kg LPG at Tk 891 instead of the current price of Tk 842, reports UNB.

The regulatory body re-sfixed the price adjusting with Saudi contract price (CP).

The price of LP Gas Company Limited, a state-owned company, will remain the same at Tk 591 for 12.5 kg LPG as it has no relation with Saudi CP.

In re-fixing the price, the value of per kg of LPG was considered to be Tk 70.24, including value added tax, and such price will be applicable for re-fixing the price of other weighed containers.

The other quantity's LPG will be selling at higher prices to be fixed rationally.

The auto gas price was also re-fixed at 44 per litre against the current price of Tk 41.47 under the price adjustment procedure.

"This price will be applicable for the month of June until further adjustment in the Saudi CP," said BERC chairman Md Abdul Jalil while announcing the new price through a virtual briefing on Wednesday.

Normally Armaco–Saudi Arabia’s biggest oil company–announces its CP for bulk LPG at the concluding state of every month for the next month's transactions.

Most of Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP and market it in the country.

The BERC for the first time fixed the retail level LPG price on 12 April after holding a public hearing to comply with a High Court order.

About 20 private companies have been operating in the market with more than 95 per cent market share by annually importing 1.2 million tonnes of bulk LPG from mainly the Middle East.

State-owned LP Gas Company is locally producing 25,000 tonnes of LPG from locally-produced condensates at different gas fields.