The price of Liquefied Petroleum Gas (LPG) per 12 kg cylinder has increased by Tk35 at the consumer level, bringing the new price to Tk1,455 from this month. This marks a total increase of Tk100 over the last four months.
As a result, consumer-level expenses have risen again due to the price hike.
The Consumers Association of Bangladesh (CAB), an organization dedicated to protecting the rights of middle-class and low-income consumers, warns that if this trend continues, the public may be forced to take to the streets in protest, as the problem will otherwise remain unresolved.
According to the Bangladesh Energy Regulatory Commission (BERC), there is no possibility of a price reduction before February. BERC adjusts the price of LPG each month, and while the import price of LPG has remained unchanged, the price has risen slightly due to the appreciation of the dollar.
The price of a 12 kg LPG cylinder has increased by Tk100 in the last four months, as noted by BERC.
The price hikes began in July, when the cost of a 12 kg cylinder rose by Tk3. In August, increasing by Tk11 to Tk1,377. By September, the price had reached Tk1,421, and this month, it has risen by an additional Tk35.
Bangladesh Energy Regulatory Commission Secretary Barrister Md. Khalilur Rahman Khan explained that LPG prices are adjusted monthly, primarily based on the Saudi CP (Contract Price). BERC adjusts the prices of butane and propane, the raw materials for LPG, at the end of each month. The price fluctuations in Bangladesh are largely influenced by the rise and fall of these raw material prices. However, in winter, demand in European countries increases, which drives up global market prices.
Considering all factors, there is little chance of a reduction in LPG prices in Bangladesh before February. "I understand the pressure this places on consumers," said Khan. "But inflation in Bangladesh is severe, so we cannot guarantee a price decrease. However, we will continue to monitor the LPG market to ensure that people can purchase gas at the BERC-regulated price. We have already sent letters to the district commissioners to monitor the markets, ensuring that LPG is not sold at inflated prices."
Regarding price control efforts, Khan noted that while BERC receives complaints, many complainants are unwilling to provide documentation about those engaging in price manipulation. "Without proof, how can we take action?" he asked. "In addition to monitoring, we will hold a public hearing where consumers can voice their concerns and demands." However, he could not provide a specific date for the public hearing.
What CAB says
CAB Senior Vice President Professor Shamsul Alam told Dhaka Tribune that there are no regulations in place for raising prices without public hearings.
"Public hearings should be conducted before prices are increased, but this has not been done during any government's tenure. Even the new government’s bureaucrats are unaware of this," he said. "Although the government has changed, the practices remain the same. Similar actions were taken regarding gas prices, but these were stopped by a High Court ruling. Now, we are seeing the same pattern with LPG."
He added: "I believe people need to unite and protest in the streets. Otherwise, we will not be able to put an end to this practice."
It should be noted that BERC Chairman Helal Ahmed announced the new LPG price at a press conference held at BERC’s Karwan Bazar office on Tuesday afternoon.
According to the announcement, the retail price of private LPG has been set at Tk121.32 per kg, including VAT, at the consumer level. The price of private LPG supplied in liquid form through a reticulated system has been fixed at Tk117.49 per kg, including VAT.
Additionally, the new price for LPG used in vehicles (auto gas) has been set at Tk66.84 per litre.
Multiple cylinder sizes are available in the market, ranging from 5.5 kg to 45 kg. Aside from household cooking, LPG is used in restaurants, transportation, and small to large industries. More than 99 percent of the market is dominated by the private sector.
In June, BERC reduced the price of LPG by Tk30, bringing the cost of a 12 kg cylinder to Tk1,363. In May, the price was reduced by Tk49, setting it at Tk1,393. In April, compared to March, the price of a 12 kg cylinder was reduced by Tk40, bringing it to Tk1,442.
