Liquefied petroleum gas (LPG) price is jacked up to Tk 1,940 per 12-kilogram cylinder in a second successive hike within a month, which critics say would increase pressure on household budgets.
Bangladesh Energy Regulatory Commission (BERC) Sunday announced the latest "adjustment" in the price of the widely used cooking gas with a rise by Tk 212 from the previous rate of Tk 1,728.
The new rates came into effect immediately, from 6:00pm the same day, reflecting the urgency the government feels in the wake of a global fuel crisis created by the US-Israel was with Iran.
In just 18 days, analysts say, the price of a 12kg LPG cylinder has jumped by Tk 599, reflecting an unusually sharp rise within a short span and thus intensifying pressure on consumers of all modes.
On April 2, the price was first increased by Tk 387, bringing the rate to Tk 1,728. April 19 sees the price increase by another Tk 212, bringing the current retail price to Tk 1,940.
Earlier this month of April, LPG price was increased by Tk 32.30 per kg. In the latest revision, the price has been raised by a further Tk 17.62 per kg, taking the total increase within weeks to a notable level.
Under the new pricing, the liquid petroleum gas will cost Tk 161.66 per kg, while autogas price has been set at Tk 89.90 per litre. Prices of cylinders of other weights have also been adjusted proportionately.
The latest raise has heightened concerns among urban households, many of whom say cooking-gas expenses are taking up a growing share of their monthly budgets. The impact is particularly severe for families without access to alternative energy sources.
The regulator attributes the price increase mainly to volatility on the international market. Ongoing tensions in the Middle East and uncertainty surrounding the Strait of Hormuz have disrupted LPG shipments, forcing suppliers to use alternative routes that are more time-consuming and costly.
The energy commission says, "War-related risks have also pushed up insurance and security costs. As a result, transportation costs and trader premiums have been revised upward to $250 per metric tonne."
In addition, rising global prices of propane and butane have directly influenced the domestic LPG market.
However, limited supply means most consumers continue to rely on the private market.
The commission instructs that LPG "must not be sold above the set price at any stage, from bottling plants to retail outlets".
The LPG-price rise comes in lockstep with increases in prices of fuel oils that are not in adequate supply at pump-level rationing. Queues to refuelling stations are visible especially in the capital city, Dhaka.
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