12kg LPG cylinder price rises by Tk252 to Tk1,837

The price of a 12kg liquefied petroleum gas (LPG) cylinder has been increased by Tk252, taking the price to Tk1,837.

The Bangladesh Energy Regulatory Commission (BERC) announced the new price today (4 October), with the revised rate taking effect from 6pm.

In September, BERC had reduced the price of a 12kg LPG cylinder by Tk13 to Tk1,585.

According to a BERC press notification issued today, the regulator calculated the October price based on Saudi Aramco's Contract Price (CP) for propane and butane, which stood at $680 and $730 per tonne respectively.

The average Saudi CP was therefore set at $712.50 per tonne. The commission also considered $250 per tonne in shipping and trader premiums and an average exchange rate of Tk123.18 per US dollar while determining the new price.

The price of private LPG at the retail level has been set at Tk153.06 per kg, including VAT. Accordingly, the price of a 12kg LPG cylinder has been fixed at Tk1,837, including VAT.

The BERC has also revised the prices of LPG cylinders in other sizes, including 5.5kg, 12.5kg, 15kg, 16kg, 18kg, 20kg, 22kg, 25kg, 30kg, 33kg, 35kg and 45kg.

Meanwhile, BERC has set the consumer-level price of autogas at Tk84.62 per litre for October. For LPG supplied through a reticulated system in liquid form, the consumer price has been fixed at Tk149.31 per kg, including VAT.

For gas supplied through a reticulated system, the rate has been set at Tk331.90 per cubic metre. The price of government-supplied LPG at dealer and retailer points remains unchanged at Tk776.93 for a 12.5kg cylinder.

The sharp upward adjustment comes at a time when consumers are already paying significantly higher prices than the regulator-fixed rate amid complaints of supply shortages and higher international costs.

Despite BERC fixing the price of a 12kg cylinder at Tk1,585 for September, consumers have been paying Tk2,000–Tk2,500, according to traders and consumers.

The latest price increase is also unlikely to immediately resolve the gap between the regulated and retail prices, particularly if supply constraints persist in some parts of the country, sector insiders said.

The LPG Operators Association of Bangladesh (LOAB), however, has said there is no shortage of LPG in the country and that imports are sufficient to meet domestic demand.

The association recently directed its member companies, distributors, dealers and retailers to sell LPG at prices fixed by BERC.

It said Bangladesh imported around 156,000 tonnes of LPG in September, compared with about 158,000 tonnes in August.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood recently instructed deputy commissioners to investigate whether artificial shortages were being created in any part of the country to charge consumers higher prices.

The DCs were asked to report why shortages were being reported despite claims of adequate supply and whether consumers were being charged above the BERC-fixed price.

The government said action would be taken against those found creating artificial shortages or overcharging consumers.

The latest BERC adjustment therefore comes against a backdrop of conflicting claims in the LPG market - while LOAB maintains that imports are adequate, dealers in some areas have reported supply cuts and consumers have faced prices well above the regulated rate.