The technical committee of the Bangladesh Energy Regulatory Commission (BERC) has made recommendation to increase the price of a 12kg Liquefied Petroleum Gas (LPG) cylinder by Tk 65.
The recommendation was made at a public hearing of BERC at Biam auditorium in the capital on Monday presided over by Commission Chairman Abdul Jalil.
The technical committee formed by the commission said that according to the Saudi CP, the supply cost of LPG in September has been fixed at Tk 91.48 per kg and the price of a 12kg cylinder at Tk 1,097.
LOAB (LPG Operators Association of Bangladesh) claimed that there is a deficit of Tk 224 on per 12 kg cylinder at different levels of operation following the price announced by Bangladesh Energy Regulatory Commission (BERC).
Meanwhile, Bashundhara LPG Executive Director Zakaria Jalal demanded an increase in charges in six areas to cover the deficit.
At the same time, LOAB representatives demanded for not changing the price of auto gas every month.
At the commission's hearing, Professor Shamsul Alam, energy adviser to Consumers Association of Bangladesh (CAB), said a case was pending in the court about the issue. Now the issue of LPG price will be decided in the court. As a result, consumers will not get anything at this hearing.
He said the LPG operators applied to the commission for re-hearing between May 29 and June 3. But there is an obligation to apply within 30 days of the commission's order. So, their application on the issue was unacceptable.
Commission chairman Abdul Jalil said at the hearing, "We have been listening to the operators and consumers representatives all day long. Now the commission will analyse these issues and make a decision.”
BERC has set new retail prices for the first time by lowering the retail price of LPG on April 12 after a public hearing with the participation of all parties. After that, BERC is adjusting the price every month based on the Saudi Contract Price (CP) of Propane and Butane. Propane and Butane are the two components of LPG, which Bangladesh imports from the international market. However, LPG operators in the country are not implementing it.
The government increased per kg LPG price by Tk 3.35 from September.
For this, consumers are paying an additional Tk 40 for each 12kg liquefied petroleum gas (LPG) cylinder of private companies from this month.
The 12kg cylinder, that cost Tk 993 in August, is now being sold at Tk 1, 033 with effect from September 1.
This is for the third consecutive month that the Bangladesh Energy Regulatory Commission (BERC) has imposed the price hike.