12kg LPG cylinder price jumps by Tk 252

Bangladesh Energy Regulatory Commission (BERC) has raised the price of liquefied petroleum gas (LPG) supplied by private-sector operators in the domestic market.

The price of a 12kg LPG cylinder for October has been increased by Tk 252 to Tk 1,837.

BERC announced the new price on Sunday, October 4. The increase marks a significant rise from the rate set for September.

Under the latest decision, consumers will have to pay Tk 252 more for a 12kg cylinder than they did last month. The price was Tk 1,585 in September, meaning the cost of the widely used cylinder has risen by about 16% in a month.

LPG prices have fluctuated considerably in recent months. A 12kg cylinder cost Tk 1,528 in July.

The price was increased by Tk 70 to Tk 1,598 in August before being reduced by Tk 13 to Tk 1,585 in September.

BERC generally adjusts private-sector LPG prices based on several factors, including international prices of propane and butane, the contract prices announced by Saudi Aramco, import costs, transportation expenses and the US dollar exchange rate. The commission has been making monthly adjustments to LPG prices since April 2021.

Even before the latest price revision, there had been complaints that 12kg LPG cylinders were being sold above the official price in various parts of the country. Reports said cylinders officially priced at Tk 1,585 were being sold for more than Tk 2,000 in Dhaka and some other areas.

Industry sources attributed the situation partly to reduced supplies, higher transportation costs and volatility in international markets.

The new price is expected to increase monthly household expenses for families that use LPG for cooking. Commercial establishments that rely on cylinder-based LPG for cooking and other purposes may also face higher operating costs.

LPG prices had also undergone a major adjustment earlier this year. In April, the price of a 12kg cylinder was increased by Tk 387 to Tk 1,728.

Prices subsequently fell in May and June, while a further Tk 357 reduction in July brought the price down to Tk 1,528.

The price was then raised in August and has now increased sharply again in October.