Consumers will have to pay a higher price to buy liquefied petroleum gas (LPG) as the cost of the imported gas continues to rise across the country as the energy regulator on Tuesday announced its new price in line with the international market.
As per the new price, consumers will have to pay Tk1,033 for a 12kg LPG from September 1 instead of Tk993, up by Tk40.
Last month, the price was raised by Tk102 for the same quantity of LPG and the prices of other quantities raised at the same ratio.
The Bangladesh Energy Regulatory Commission (BERC) announced the new price of LPG adjusting it with Saudi Contract Price (CP) as the local LPG operators import the bulk petroleum gas from the Middle East.
“As the price of Saudi CP has gone up internationally, so we have to follow it in fixing the new price,” said BERC Chairman Abdul Jalil, adding, "If the price comes down, we will act accordingly."
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However, the price of LPG of the state-owned LP Gas Company Ltd will remain the same at Tk591 for 12.5kg LPG as it sells products from condensates produced in local gas fields and has no relation with Saudi CP.
Some 20 private companies dominate the local LPG market with more than 95 per cent market share through an annual import of 1.2 million metric tons while the LP Gas Company supplies only 25,000 metric tons.
Based on the Saudi CP, the BERC also refixed the price of auto gas price at a higher rate of Tk50.56 instead of Tk48.71 per litre.
BERC Md Abdul Jalil announced the new LPG price through a virtual briefing while other members of the commission were present online.
Usually, Armaco, the largest company of Saudi Arabia, announces its CP for bulk LPG at the concluding state of every month for the next month’s transactions.
Most Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP and market it locally.
The BERC for the first time fixed the retail-level LPG price on April 12 after holding a public hearing to comply with a High Court order.
