Liquefied petroleum gas (LPG) price is cut by around 7.0 per cent for July marketing of the fuel by private operators, amid downturn in global energy prices from crisis-time peaks.
Bangladesh Energy Regulatory Commission (BERC) announced the monthly readjustment of the retail LPG rate with a cut by Tk 75 to Tk 999 per 12-kilogram cylinder from Tk 1,074.
The BERC chairman, Md Nurul Amin, announced the new price of the cooking fuel at a press briefing at commission’s office, with immediate effect from 6:00 pm on the day.
The commission adjusted the fuel price for the domestic market in proportion to the Saudi Aramco contract price (CP) for July 2023 as the benchmark.
“Also considered are fluctuations in foreign-exchange rates and changes in the value-added tax (VAT),” says the announcement.
The Saudi Aramco CP price of propane and butane is US$400 per tonne and US$375 per tonne respectively for July trading.
The BERC considered the propane and butane mixture at the ratio of 35:65 to get the average price at US$383.75 per tonne.
In a changed pricing method the energy commission has fixed LPG prices for private operators within the first week of every month since April 2021.
The private-sector traders can sell LPG in different sizes of cylinders like 5.5 kg, 12.5kg, 15kg, 16kg, 18kg, 20kg, 22kg, 25kg, 30kg, 35 kg and 45 kg to consumers at proportionately lower prices, according to the BERC announcement.
The price of LPG to be supplied through a reticulated system, or centralised storage system, will be Tk 79.98 per kg including VAT for July compared to June’s Tk 86.25.
The retail price of autogas, the LPG being used in vehicles, is also slashed to Tk 46.59 per litre inclusive of VAT from the previous Tk 50.09 per litre.
The price of state-owned LP Gas’s LPG, however, is kept unchanged at Tk 591 per 12.5 kg cylinder.
Sources said currently some 27 LPG operators are doing business although some 58 received licences to carry out the business.
Some 20 operators import around 1.10 million tonnes of LPG from the international market, which is around 98 per cent of the country’s total requirement for LPG, while seven are satellite operators.
There are some 20 LPG terminals across the country and the reserve capacity has around 100,000 tonnes in total.
Some 35 million LPG cylinders are being used by the LPG businesses in the country.
Around 200 road tankers, 5,000 trucks and 21 cargoes are involved in the LPG businesses across the country.
Azizjst@yahoo.com
