Further adjusting with Saudi Contract Price (CP), the Bangladesh Energy Regulatory Commission (BERC) has re-fixed the price of Liquefied Petroleum Gas (LPG) at the retail level with effect from May 1.
According to the new rate, private companies will have to sell a 12kg LPG cylinder at Tk 906, down from the existing price of Tk 975.“The new price rate will be made effective from next month,” BERC Chairman Abdul Jalil said while announcing the new price at a virtual press conference on Thursday.
However, the commission did not re-fix the prices of the LPG gas sold by the state-owned Liquid Petroleum Gas Ltd (LPGL) as there is no connection with Saudi CP.
The current price of the 12.5kg LPG cylinder sold by LPGL is Tk 591.
On April 12, the commission fixed the retail prices of LPG for the first time. The BERC fixed the price 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.
For adjusting the price following the Saudi CP on Thursday, BERC fixed the LPG price at Tk 75.49 per kilogram at the retail level.
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. Replying to a query over a letter from the LPG Operators Association of Bangladesh’s (LOAB) regarding the review of LPG price, the BERC chairman said all the elements have been taken into consideration while fixing the LPG price in line with the Saudi CP.
“We have already explained them the matter. For further discussion, a meeting will be held with LOAB on May 6,” added the BERC chairman.
About implementing the new price at the consumer level, he said the commission in association with other stakeholders is trying to implement the new price.
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
Currently, around 56 companies have licences for LPG business in Bangladesh. Of those, 28 companies are in operation.