The price of liquefied petroleum gas (LPG) has increased by Tk 4 per kg – from Tk 116 to Tk120 on the very first day of Ramadan, the lunar month of self-purification through fasting and abstinence of Muslims.
Under the new price, a 12kg LPG cylinder will now cost Tk 1,439 up from the previous price of Tk 1,391, including the value-added tax (VAT).
The Bangladesh Energy Regulatory Commission (BERC) announced the new prices at a virtual press conference on Sunday and said they will come into effect from 6:00 pm on Sunday.
However, the price of the state-owned LP Gas Company's LPG will remain unchanged as it has no relation to the global market price. The official price of 12.5 kg LPG has remained at Tk 591.
Earlier on March 3, the price per 12kg LPG cylinder was fixed at Tk 1,391 increasing from Tk 1,240. On February 3, it was hiked by Tk 62 and fixed at Tk 1,240 which was Tk 1,178 in January this year.
According to the new price, the autogas price has been raised to Tk 67.02 per liter from Tk 63.07, while the price per kg centrally controlled (reticulated) LPG has increased from Tk 112.65 to Tk 116.70.
Making the announcement, BERC Chairman Abdul Jalil said the price of retail LPG has witnessed the rise as the bulk LPG of Saudi contract price (CP) has increased globally due to the Russia-Ukraine war and also the increase in the Taka-Dollar rate. Now each dollar’s exchange rate is Tk85.25 which was earlier Tk85.07.
Similarly, the importers have to pay higher amounts against a 7 percent VAT while the overall cost is higher than earlier, said the BERC chairmen.
He said the Saudi contract price has risen globally to $953-- from $911.25 per metric tonne.
“It is hard to predict whether the price will go up or down in the current global situation,” he said.
Earlier, in January, the price of LPG was reduced by Tk50, while in December, the price was cut to Tk 1,228 from Tk 1,313 at the retail level after five months of consecutive hikes.
In July-November last year, the country saw a Tk 471 rise in the price of a 12kg gas cylinder provided by the private operator.
According to industry insiders, the Saudi CP is normally announced at the end of every month to make it effective for the next month, and it takes at least 7-10 days for a shipment of the fuel to arrive in the country.
Most Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP and market it locally.
The BERC for the first time fixed the retail-level LPG price on 12 April 2021 after holding a public hearing to comply with a High Court order. Since then, the prices have been updated every month.
