Some 20 private companies dominate the local LPG market with more than 95% market share
The price of liquefied petroleum gas (LPG) supplied by private companies has been increased at the consumer level, effective from August 1.
A 12kg private LPG cylinder will cost Tk993, up by Tk102, from Tk891. This is the maximum retail price.
Energy regulator Bangladesh Energy Regulatory Commission (BERC) announced the new prices at an online press conference on Thursday.
The BERC has adjusted the price of LPG due to mounting prices in the world market. In addition, the price of LPG of the state-owned company has not changed as the cost has not changed at the production stage.
The official price of 12 kg LPG has remained at Tk591.
Some 20 private companies dominate the local LPG market with more than 95% market share through an annual import of 1.2 million metric tons while the LP Gas Company supplies only 25,000 mts.
The new price of LPG used in cars is Tk48.71 per litre, which was Tk44 previously.
Apart from this, the prices of 5.5, 12.5, 15, 16, 18, 20, 25, 30, 33, 35 and 45 kg LPG have also been re-fixed in the BERC order.
BERC Chairman Md Abdul Jalil said that according to paragraph ‘Ka’ of the BERC Act, the Saudi CP of propane and butane declared by Saudi Aramco for the month of July is 620 per ton and the average ratio of propane and butane is 620 per ton of propane and butane. This price has been determined considering this. .
On April 12, the commission announced the pricing of LPG for the first time.
The price of LPG in the country is usually determined according to the Saudi CP (Contract Price).
Most Bangladeshi private companies import their bulk LPG from the Middle East based on Saudi CP and market it locally.
When the price of Saudi CP changes at the end of each month, the commission issues a new order to change the price of LPG.
The BERC chairman said that even if the price was rearranged, other orders issued by the commission on LPG on April 12 would remain unchanged.
"We have only one office and low on manpower. It is not possible for the commission to implement this price alone without the cooperation of all," he added.