12-kg LPG cylinder price drops by Tk 39

The price of liquefied petroleum gas (LPG) in the private sector has been reduced by Tk 3.30 per kg at the consumer level.

For July, the price of a 12-kg LPG cylinder has been set at Tk 1,364, down by Tk 39 from Tk 1,403 last month.

Bangladesh Energy Regulatory Commission (BERC) chairman Jalal Ahmed announced the revised prices at a press conference at the commission’s office today, Wednesday. The new rates will take effect from 6:00 pm today.

The BERC sets LPG prices every month. However, there have been complaints that the fuel is not always sold at the regulated prices in the market. The 12-kg LPG cylinder is the most commonly used size for household cooking.

According to the new pricing, the price of private-sector LPG including VAT has been fixed at Tk 113.64 per kg, down from Tk 116.94 last month. It means the price has dropped by Tk 3.30 per kg, which will apply proportionally to other cylinder sizes as well.

The price of a 12.5-kg LPG cylinder supplied by state-owned companies remains unchanged at Tk 825. Similarly, the price of autogas (LPG used in vehicles) remains unchanged at Tk 64.30 per liter.

Since April 2021, the BERC has been setting LPG prices based on international market trends. The main raw materials used to produce LPG – propane and butane – are imported from abroad.

Each month, Saudi Arabian oil company Aramco releases the international prices for these components, known as the Saudi Contract Price (CP). The BERC uses the Saudi CP as the reference price to adjust local LPG prices, calculating the monthly average based on the invoices of imports and the prevailing exchange rate.