Govt fixes retail LPG prices

Staff Correspondent

13 April, 2021 12:00 AM printer

Govt fixes retail LPG prices

Bangladesh Energy Regulatory Commission (BERC) has fixed the retail prices of liquefied petroleum gas (LPG) with effect from Monday.

According to the decision, the retail price of a 12.5 kg cylinder marketed by the state-owned company will cost Tk 591 while a 12 kg LP gas cylinder supplied by private companies will cost Tk 975.

BERC chairman Md. Abdul Jalil announced the prices at a virtual press conference.

The private companies’ LPG price has been fixed based on the Saudi contract price (CP).

The price will be adjusted every month based on the Saudi Contract Price (CP) of Propane and Butane, the raw materials for the cooking gas, said the BERC Chairman.

He said the Commission has taken up the initiative to fix the retail price of LPG through conducting a public hearing, where licensees and other stakeholders took part.

The BERC held the public hearing on LPG price-fixing as per “The BERC Act, 2003, added the Chairman.

Currently, a 12kg LPG cylinder is being sold in the retail market at Tk 980 to Tk 1,050, depending on companies.

BERC Chairman said that they have fixed the LPG price for the first time in the country for the sake of consumers.

On the price fixing of LPG by BERC, Engineer Jakaria Jalal, Head of Sales, Bashundhara LPG Ltd, said there is no chance of disagreeing with the government’s decision and private LPG operators have to follow the new decisions.

“But the BERC has not fully taken care of the LPG sector’s Tk 32,000 crore investment,” he added.

 “We will write to the Commission from our association in this regard so that they can keep in mind the issues facing the private sector while fixing the next LPG price,” said Jakaria Jalal.

The BERC Chairman said the LPG price has been fixed at Tk 81.30 per kilogram at retailer level inclusive of VAT. The price of LPG cylinders ranging from 5.5 kg to 45 kg will be calculated as per the mentioned rate at the retail level.

Now the consumers will pay the same rate across the country, he said, adding that companies are compelled to follow the decision of the government.

If any company violates the government decision, as a regulatory authority, BERC will take legal action like scrapping license, he said.

Replying to a query, BERC Chairman Abdul Jalil said now only they will fix or re-fix the price of LPG following the Saudi CP.

 “We will adjust the price of LPG at the retail level within the short period in coming days soon after getting the Saudi Aramco rate,” added Abdul Jalil.

Talking about the subsidy to LPG, the chairman said BERC technical team has discussed the subsidy matter and mentioned about providing gross subsidy to the state-owned LPG Company.

 “But, this is a policy related matter. If the government has any plan to provide subsidy to public and private LPG companies, then we will take measures as per the decision,” he said.

Currently, around 56 companies have licences for LPG business in Bangladesh. Of those, 28 companies are in operation.

Propane and Butane are the two components of LPG, which Bangladesh imports from the international market.

Asian countries, including Bangladesh, refer to Saudi state-owned Aramco's monthly Contract Price (CP) for setting up LPG price in their respective local markets.