Price of private operator-marketed liquefied petroleum gas (LPG) has declined by Tk50, from Tk1,228 to Tk1,178 per 12-kg cylinder, excluding value added tax (VAT), at the retail level,
Bangladesh Energy Regulatory Commission (BERC) announced the new price at a virtual press briefing on Monday.
As per the announcement, the prices for other quantities of the LPG will also go down in line with the new price at the same ratio effective from Monday. LPG price was cut in December, after five months of consecutive price hikes.
In an order issued on Monday, BERC fixed the price of LPG per kg, including VAT, at Tk 98.17, a decrease of Tk 4.15 per kg, or 4%. The price was Tk 102.32 per kg in December.
The price of autogas for motor vehicles has also been cut down to Tk54.95 from the present price of Tk57.24 per litre.
Making the announcement, BERC Chairman Abdul Jalil said the price of retail LPG has witnessed the fall as the bulk LPG of Saudi contract price (CP) has declined globally.
"Saudi CP price has declined to $420 from the previous price of $765.75 per metric ton. Bangladesh's private LPG operators buy the bulk LPG on the basis of the Saudi CP," he told reporters at the briefing.
The BERC chairman said the price of the state-owned LP Gas Company's LPG will remain unchanged as it has no relation with the global market price.
According to industry insiders, the Saudi CP is normally announced at the end of every month to make it effective for the next month, and it takes 7-10 days for a shipment of the fuel to arrive in the country.
Most Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP, and market it locally.
Responding to a question, the BERC chairman said the Commission will take initiatives to install an electronic dashboard at retail LPG outlets to ensure the sale of the products at the proper rate to be fixed by the BERC.
Besides the chairman, Secretary Abu Sayeed, Member Maqbool E Ilahi and other members were present at the press conference.
Bangladesh Energy Regulatory Commission (BERC) had set new retail prices for the first time by lowering the retail price of LPG on April 12 after a public hearing with all parties. Following that meeting, BERC is constantly adjusting LPG price every month based on the Saudi Contract Price (CP) of Propane and Butane. Propane and Butane are the two components of LPG, which Bangladesh imports from the international market. But household consumers of LPG are forced to pay an extra amount.
The LPG Operators Association of Bangladesh (LOAB) is working to thwart the government's initiative to prevent the LPG market anarchy. As a result, the consumers have to buy LPG cylinders at higher prices.
