12kg LPG cylinder price rises by Tk 38

The Bangladesh Energy Regulatory Commission (BERC) has increased the retail price of the widely-used 12-kg liquefied petroleum gas (LPG) cylinder by Tk 38, setting the new rate at Tk 1,253 for December.

The commission also raised the pump price of auto-gas -- LPG used in vehicles -- by Tk 1.74 per litre to Tk 57.32 from Tk 55.58 last month. The revised rates took effect on Tuesday. This is the first LPG price hike after seven consecutive months of reductions.

BERC Chairman Jalal Ahmed announced the changes at a press briefing at the commission's office in the IEB building. The commission adjusted cooking fuel prices for the domestic market based on the Saudi Aramco contract price for December. It also factored in fluctuations of foreign exchange rates and changes in value-added tax (VAT).

The Saudi Aramco CP (contract price) price of propane and butane is USD 495 and USD 485 per tonne respectively for December trading. The BERC calculated the price of a propane and butane mixture at a ratio of 35:65 at USD 488.50 per tonne.

Since April 2021, the commission has been setting LPG prices for private operators in the first week of every month. The private sector may sell LPG in various cylinder sizes -- 5.5 kg, 12.5 kg, 15 kg, 16 kg, 18 kg, 20 kg, 22 kg, 25 kg, 30 kg, 35 kg and 45 kg -- to consumers at proportionately higher prices in December.

The price of LPG supplied through a reticulated system or centralised storage system has also risen to Tk 223.80 per cubic metre for December from previous month's Tk 221.40 per cubic metre. The price of the state-owned LP Gas's 12.5-kg cylinder, however, remains unchanged at Tk 825.

Currently around 27 LPG operators are in business, although licences were issued to about 58 companies. Some 26 operators import about 1.10 million tonnes of LPG from the international market, which accounts for around 98 per cent of the country's total LPG demand, while seven are satellite operators.

About 35 million LPG cylinders are in use across the country's LPG businesses. The sector employs around 200 road tankers, 5,000 trucks and 21 cargo vessels nationwide.

Azizjst@yahoo.com