Bangladesh Energy Regulatory Commission (BERC) has slashed by 2.79 per cent the retail prices of liquefied petroleum gas (LPG) to be supplied by private operators for August trading in the domestic market.
The price of a 12kg cooking fuel has been adjusted lower at Tk 1,219 compared to Tk 1,254 of July, BERC chairman Md Abdul Jalil said, announcing the new tariff virtually on Tuesday.
The new prices will have immediate effect from August 2, 2022, he said.
The commission adjusted the LPG prices considering the Saudi Aramco contract price (CP) of August, 2022 as the benchmark for fixing LPG prices for the domestic market.
It also considered fluctuations of foreign currency and change in the value added tax (VAT) amount to fix the prices.
The Saudi Aramco CP price of propane is US$670 per tonne and butane $660 per tonne for August trading.
The BERC has considered the propane and butane mixture at the ratio of 35:65 to get the average price at $663.50 per tonne.
The BERC fixes the LPG prices for private operators within the first week of every month.
The private sector will be able to sell LPG through different sizes of cylinders like 5.5 kg, 12.5kg, 15kg, 16kg, 18kg, 20kg, 22kg, 25kg, 30kg, 35kg, 45kg to consumers at proportionately lower prices in August, he said.
The price for LPG to be supplied through a reticulated system, or centralized storage system, will be Tk 98.38 per kg, including VAT, in August.
The retail prices of auto gas and LPG used in vehicles also slashed to Tk 56.85 per litre, including VAT, for August.
The price of state-owned LP Gas's LPG has been kept unchanged at Tk 591 for 12.5 kg.
Currently, 27 LPG operators are doing businesses in the country although some 58 got licenses 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 of 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 in the LPG businesses in the country.
Some 200 road tankers, 5,000 trucks and 21 cargoes are involved with the LPG businesses across the country.
Azizjst@yahoo.com