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File Photo: UNB
Bangladesh Energy Regulatory Commission (BERC) has cut the retail price of liquefied petroleum gas (LPG) by Tk1.03 per kilogramme for September, bringing the price of the widely used 12kg cylinder down by Tk13 to Tk1,585.
The new price came into effect at 6pm on Wednesday.
The 12kg LPG cylinder was priced at Tk1,598 in August, after rising sharply by Tk70 from Tk1,528 in July.
Despite this month’s reduction, consumers are still paying Tk57 more per cylinder than they did in July.
The price adjustment comes amid a continuing shortage of piped natural gas, which has increased household dependence on LPG for cooking and put additional pressure on household budgets.
According to BERC, Saudi Aramco’s September contract prices for propane and butane, based on a 35:65 ratio, put the average Saudi CP (contract price) at $647.75 per tonne.
The commission calculated the new LPG prices taking into account the Saudi CP, shipping costs, traders’ premiums and an average exchange rate of Tk123.30 per US dollar.
Under the revised pricing, the price of a 5.5kg cylinder has been set at Tk727, while 12.5kg, 15kg, 16kg, 18kg, 20kg, 22kg, 25kg, 30kg, 33kg, 35kg and 45kg cylinders will cost Tk1,652, Tk1,982, Tk2,113, Tk2,378, Tk2,642, Tk2,907, Tk3,303, Tk3,964, Tk4,360, Tk4,624 and Tk5,945, respectively.
The price of autogas used in vehicles has also been reduced to Tk73.09 per litre.
However, the price of the state-owned company’s 12.5kg LPG cylinder remains unchanged at Tk776.93.
BERC has been fixing LPG prices every month since April 2021 based on international prices of propane and butane, known as Saudi CP, and the US dollar exchange rate.
Consumers, however, have long complained that LPG is often unavailable at the prices fixed by the regulator.
Reiterating its pricing order, BERC said no level of the supply chain, including storage, bottling, distribution or retail, could charge consumers more than the prices fixed by the commission.