Govt reduces LPG price

Bangladesh Energy Regulatory Commission (BERC) has reduced the retail price of liquefied petroleum gas (LPG) by 1 taka 3 poisha per kg for the month of September. With this, the price of the widely used 12 kg cylinder has decreased by 13 taka and become 1,585 taka.

BERC fixed the new price on Wednesday (September 2). This price has become effective from 6pm on the same day.

In August the price of 12 kg LPG cylinder was 1,598 taka. Before that in July the price was 1,528 taka. As a result, although the price has decreased this month, consumers will still have to pay 57 taka more per cylinder compared to July.

Due to the ongoing crisis of natural gas in the pipeline, the dependence of families on LPG for cooking has increased. This has also created additional pressure on their expenses. Amid this, the new price of LPG has been fixed.

BERC has informed that the average Saudi contract price has been fixed at 647.75 US dollars per metric ton considering the contract price of propane and butane of Saudi Aramco in 35:65 ratio for September.

The commission has fixed the new price of LPG considering the Saudi contract price, ship transportation cost, premium of traders and the average exchange rate of 123 taka 30 poisha against each US dollar.

In the revised price, the price of 5.5 kg cylinder has been fixed at 727 taka. The price of 12.5 kg cylinder is 1,652 taka, 15 kg 1,982 taka, 16 kg 2,113 taka, 18 kg 2,378 taka, 20 kg 2,642 taka, 22 kg 2,907 taka, 25 kg 3,303 taka, 30 kg 3,964 taka, 33 kg 4,360 taka, 35 kg 4,624 taka and 45 kg cylinder 5,945 taka.

The price of autogas used in vehicles has also been reduced. In the new price, each litre of autogas will be sold at 73 taka 9 poisha.

However, the price of 12.5 kg LPG cylinder of the state-owned company has remained unchanged. The price of this cylinder is 776 taka 93 poisha.

BERC has been fixing the price of LPG every month since April 2021 on the basis of the price of propane and butane known as Saudi contract price in the international market and the exchange rate of US dollar.

However, consumers have been complaining for a long time that LPG is often not available at the price fixed by the regulatory body. BERC has said that LPG cannot be sold to consumers at a price higher than the price fixed by the commission at any stage of the supply system—storage, bottling, distribution or retail sale.