The Bangladesh Energy Regulatory Commission (BERC) lowered further retail prices of LPG (liquefied petroleum gas) by around 7.06 per cent for trading in domestic market in June.
The retail price of a 12-kg LPG cylinder - to be provided by private operators - has been adjusted lower to Tk 842 for June, compared to Tk 906 for May, BERC chairman Md Abdul Jalil said, while virtually announcing the new tariff on Monday.
The commission adjusted the LPG prices considering the Saudi Aramco contract price (CP) of May 2021, fluctuations of foreign currency, and change in the value added tax (VAT) amount, the BERC chairman said.
Retail price of auto gas, the LPG used in vehicles, has been adjusted lower to Tk 41.74 per litre for June from Tk 44.70 per litre for May. The new prices are effective from June 1 (today), he added.
The commission considers the Saudi Aramco CP as the benchmark for fixing LPG prices in the domestic market. It also considers fluctuations of foreign currency, and change in the VAT amount.
The BERC fixed the retail prices of LPG for domestic market for the first time on April 12 after holding a public hearing on January 14 in line with a court instruction. Since then the commission has been fixing the LPG prices every month.
Last month, the BERC lowered the domestic LPG prices by around 7.0 per cent for May, as the Saudi Aramco CP in April declined to US$560 per tonne for propane and $530 per tonne for butane - from $625 and $595 respectively in March.
The Saudi Aramco CP dipped further to $495 for propane and $475 for butane in May, according to international market sources, making inroads for further drop in LPG prices in the domestic market.
Bangladesh imports around 95 per cent of its total LPG requirement from global sources, while LP Gas Ltd produces around 20,000 tonnes of LPG after refining from crude oil and condensate.
The country usually imports pressurised LPG in coaster-type vessels with a capacity of about 1,800 tonnes, delivered to Mongla Port from trading sources, such as Singapore, or the nearest deep sea-ports where large ships can anchor and break bulk. Its main LPG suppliers include Siam Gas, BB Energy, Vitol Asia and Petredec.
More than 25 LPG companies, of varying size and investment, are now operating in the local market.
LPG consumption in Bangladesh has risen to around 1.5 million tonnes per year now from around 1.0 million tonnes in 2018.
The country consumed almost 650,000 tonnes of LPG in 2017, around 400,000 tonnes in 2016, and 250,000 tonnes in 2015.
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