Bashundhara LPG has kept the retail prices of liquefied petroleum gas (LPG) unchanged despite a price hike both in local and international markets.
A price hike in the international market has also affected the local market as most of the LPG producers have hiked the price of a 12 kg LPG cylinder to Tk 810 from Tk 750 in October.Being the market leader, Bashundhara LPG did not raise the prices to keep its LPG products affordable for the commoners and considering the economic impact of the coronavirus pandemic on people.
Bashundhara officials said the management of the business conglomerate did not increase Bashundhara LPG prices as part of its responsibility to the country and its people.
“As part of the country’s one of the biggest industrial group, Bashundhara LPG has huge responsibilities to the country and the people. Rural and semi-urban customers are the driving force behind the growth of the company. During this unprecedented crisis created by the coronavirus pandemic and flood, many people are facing financial hardship. Considering the sufferings of people amid the pandemic and flood, Bashundhara LPG is selling LPG cylinders at minimum prices,” reads a handout of the company.
Officials also further mentioned that Bashundhara LPG is working hard to further contribute to the development of the country and the well-being of people, as envisioned by Prime Minister Sheikh Hasina in Vision 2041 for Bangladesh.
Bashundhara LP Gas has been recognized as the Best Brand in liquefied petroleum gas (LPG) category by Bangladesh Brand Forum (BBF).
In Bangladesh, around 98 per cent LPG is imported while state-run Eastern Refinery produces meets only two per cent of total demand, according to sector insiders.LPG is manufactured by refining crude oil or raw natural gas. It comprises 24.4 per cent propane, 56.4 per cent butane and 17.2 per cent isobutene.
Prime Minister Sheikh Hasina recently directed the Energy and Mineral Resources Division to explore alternative resources as researchers fear that the country is running out the reserve of natural gas, sources informed.
In this context, LPG has emerged as the first alternative to natural gas for household cooking or industrial usage. LPG has changed the landscape of resource management as the price of the liquefied gas is more affordable compared to the oil price in the international market.
In 2011, the annual market demand for LPG was 75,000 tonnes, which soared to 1.5 million tonnes in 2020. During the last 15 years, the local LPG market grew by around 15 times.
To meet the growing demand, the market is expanded by the contribution of 25 producers including Bashundhara, Jamuna, Omera, TK Gas, Orion, Promita, Navana, Sena, Beximco and G Gas. The companies invested around Tk 50 billion in this sector.
Bangladeshi LPG operators follows contract price (CP) of Saudi Arabian company Aramco to fix the retail price in the import-oriented market.
The contact price of the petroleum giant was $336/mt, which stood at $379/mt by October. In the last four months, the contract price has increased by 12.79 per cent.