12kg LPG cylinder price up by Tk40 to Tk1,033

Consumers from next month will have to pay an additional Tk40 for each 12kg liquefied petroleum gas (LPG) cylinder of private companies as the government has increased per kg LPG price by Tk3.35.

The 12kg cylinder, which now costs Tk993, will be at Tk1,033 from 1 September.

This is for the third consecutive month that the Bangladesh Energy Regulatory Commission (BERC) has imposed the price hike.

The BERC took charge of regulating LPG cylinder price in April this year. The cylinders can come with around 13 different sizes depending on how much gas they contain. 

Md Abdul Jalil, chairman at the BERC, said they have come up with the latest price hike as propane and butane – the flammable mixtures of LPG – have recently become costlier in the international market.

At a press briefing on Tuesday, he said per litre autogas in September will be Tk50.56 instead of Tk48.71 in August. 

The press briefing was told LPG price has been adjusted considering the Saudi contract price of propane and butane in August – that were $660 and $655 per tonne respectively according to the contract price. 

However, the price of 12kg LPG cylinders produced by the state-owned company remains unchanged. 

Previously, private operators were at liberty to set the LPG cylinder rates. On 12 April this year, the BERC determined and set the price for LPG cylinders for the first time, both in the public and private sectors.

Then it was said that the BREC will adjust the retail prices of liquefied petroleum gas based on the Saudi contract price of propane and butane.

Currently, the country consumes around 1 lakh tonnes of LPG each month as the usage ranges from cooking to refuelling vehicles. 

Some 27 private operators are fulfilling around 98% of the total demand whereas only 2% comes from state-owned LP Company Ltd.