Bangladesh Energy Regulatory Commission (BERC) has hiked the price of liquefied petroleum gas (LPG) by Tk1.33 per kg.
At the new rate, a 12kg cylinder will be sold at Tk 1,235, which was Tk 1,219 last month.
Bangladesh Energy regulatory Commission (BERC) announced the fresh price on Wednesday morning through a virtual press conference. The new price will be implemented from 1:00pm on Wednesday, BERC said.
However, the price of LPG sold by state-owned LP Gas Limited remains unchanged and the price of a 12.5 kg cylinder of LPG is Tk 591 as it is being produced locally and its market share is only 2%.
The energy regulatory commission said they decreased the price after LPG prices went down in the global market last month. This month the price slashed again, but due to the high dollar exchange rate, it was not possible to decrease the price.
For usage as vehicle fuel, each litre "auto-gas" will now cost Tk 57.55, which was Tk 56.85 last month.
However, consumers alleged that the companies did not follow the BERC rate last month and sold the cylinders at a high rate.
BERC acting Chairman ABM Faruq said that though the LPG price has substantially come down in the global market, consumers are not getting full advantage of the downward trend due to the high dollar price in the local market.
“Five to 45kg LPG containers will be rationally sold as per the new rates,” said BERC acting Chairman.
As per the announcement, private companies will sell LPG cylinders at Tk 102.88 per kg. The price of gas for motor vehicles has been increased to Tk57.55 per litre instead of the earlier Tk56.85 per litre.
Faruq informed that the dollar exchange rate was considered Tk104.02 on the basis of the weighted average rate of 16 importing companies’ LC settlements.
Referring to the Commission’s discussion with Bangladesh Bank, he said the central bank’s dollar exchange rate is not applicable to private importers.
“BB informed the BERC that only two government entities enjoy the benefits of the central bank’s set dollar rate”, he added.
As a result, local banks are not abiding by the dollar rate fixed by Bangladesh Bank. Rather, they set the dollar price depending on the demand and supply and their relation with clients.
Banks are calculating dollar rates much higher than Bangladesh Bank’s rate.
The price of LPG, marketed by state-owned LP Gas Company, will remain as usual as it is locally produced with a market share of less than 5%.
The LPG price went up to the highest Tk1,439 (a 12kg cylinder) in the local market, following the start of the Russia-Ukraine war in February this year.
The LPG price was the lowest at Tk1,225 for a 12kg cylinder in January this year and it witnessed continuous hikes in February, March and April.
Among others BERC members Maqbool E-Elahi Chowdhury, Mohammad Bazlur Rahman, Kamruzzaman and BERC Secretary Khalilur Rahman Khan also attended the virtual event .
