LPG again gets costlier by Tk 226 for 12-kg

Consumers will have to pay a higher price of Tk 226 to buy a 12-kg container of liquefied petroleum gas from now on as the energy regulator increased the price to Tk 1,259 from the existing Tk 1,033.

Bangladesh Energy Regulatory Commission has increased the price of liquefied petroleum gas of private companies with immediate effect.

According to the new rate, the price of a 12-kg LPG cylinder has been fixed at Tk 1,259.

“The new price will become effective from October 10,” said BERC chairman Md Abdul Jalil, announcing the new LPG price hike in an online press conference in the capital on Sunday.

The BERC chairman said per litre autogas in October will be Tk 58,68 instead of Tk 50.56 in September. It was increased by Tk 8.12 per liter.

However, the price of LPG from the state-owned company has not changed and remained at Tk 591 for 12.5 kg cylinders.

“The price of LPG has gone up in the world market. We have adjusted the price accordingly. Operators will surely implement it,” said BERC chairman.

The online press conference was attended, among others, by BERC members Maqbul-E-Elahi Chowdhury, Mohammad Abu Faruque, Mohammad Bazlur Rahman and Md Kamruzzaman were also present at the press conference.

Propane and Butane, the main ingredients for making LPG, are imported from different countries. Saudi Aramco publishes the price of these two gases every month. This is known as Saudi Cargo Price (CP).

BERC has adjusted the price of LPG in the country based on the base price of the Saudi CP.

According to Saudi CP, the prices of propane and butane rose respectively from $660 to $800 per ton and $655 to $795 in September compared to August. This new price has been set for October considering the mix ratio 35:65.

In the private sector for the current month, BERC has increased the price from Tk 86.7 to Tk 104.92 per kg. As a result, the price of a 12-kg cylinder has increased from Tk 1,033 to Tk 1,259.

The new price comes following a public hearing held on September 13. The traders said that they had demanded to set a new price arising from some issue while the consumer rights group were opposing it.

BERC member Maqbool E-Elahi Chowdhury said, “LPG is an environmentally-friendly fuel. Most of the women in our country work in cooking. Burning wood affects the lungs of women. 18 kg of wood is saved as compared to 1 kg of LPG. Instead of one million LPG, 36,000 acres of forest could be saved.”

Meanwhile, Bashundhara LP Gas head of sale division Eng Md Jakaria Jalal told The Business Post that they see these LPG price hikes as a positive one. Though all the issues that were raised during the hearing have not been fully considered, some are considered.

Still, there are some challenges in terms of implementation in this market price as many parties are now involved with it such as distributors and retailers. If everyone works together, any such gap will be reduced to a great extent, said Jakaria.

“Even after fixing the price of Tk 1,033, it is not being sold at that price at the retailers’ end.” he further added.