BERC slashes LPG gas prices

Bangladesh Energy Regulatory Commission (BERC) has reduced the price of liquefied petroleum gas (LPG) by Tk 76 — to Tk 1,422 for a 12kg cylinder, down from Tk 1,498.

In a notification, the regulator said that the new prices would come into effect from 6pm Thursday.

LPG prices for other sizes of cylinders — from 5.5kg to 45kg — will go down rationally. However, the BERC price is never implemented in the market as traders charge at least Tk 200-300 more per cyl[1]inder.

Although this irregularity has been going on for a long time, the government is yet to take any strong initiative to bring the market under control.

Retailers blame LPG operators for the higher prices. On the other hand, the operators claim the higher charge is the result of the USD shortage, devalua[1]tion of taka, complexity of opening let[1]ters of Credit and rising shipment costs.

According to BERC’s announcement, the private LPG price at the retail level has been slashed by Tk 6.33 to Tk 118.54per kg from Tk 124.85, including tax. It will not change until further notice.

Meanwhile, the price of LPG market[1]ed by state-owned LP Gas Company will remain the same — Tk 592 for a 12.5kg cylinder — as it is locally produced with a market share of less than 5 per cent.

BERC sources said the prices dropped due to a decline in the prices of Saudi CP (contract price). Last month, as per the Saudi CP, the LPG price was $790 per metric tonne. The current month’s CP was set at $733 per metric tonne.

LPG operators in Bangladesh gen[1]erally import their products from the Middle East market based on Saudi CP. 

As per the BERC decision, the price of “autogas” (LPG used for motor vehi[1]cles) also decreased to Tk 66.22 per litre (including VAT) from Tk 69.71 per litre.

The LPG price witnessed the highest price at Tk 1,498 (per 12kg cylinder) in the local market in February.

Normally, the BERC chairman announces the LPG price at the beginning of every month through a virtual press briefing. This time, there was no press briefing as four out of five BERC members, including the chairman, recently retired after their contracts with the government expired.

The new chairman is yet to be appointed.