The Bangladesh Energy Regulatory Commission (BERC) slashed liquefied petroleum gas (LPG) prices by 13 per cent on Thursday for selling the fuel to clients by private operators in June.
The country's private operators will now charge Tk 1,074 for each 12-kg cylinder, down by Tk 161 from May's retail price of Tk 1,235.
BERC Chairman Md Nurul Amin announced the new prices in a press briefing at the commission's office, which came into effect from 6:00 pm Thursday.
The commission adjusted the prices for the domestic market considering the Saudi Aramco contract price (CP) for June 2023 as the benchmark.
It also considered fluctuations in foreign exchange rates and changes in the value added tax (VAT).
The Saudi Aramco CP price of propane and butane is US$450 per tonne and $440 per tonne respectively for June trading.
The BERC considered the propane and butane mixture at the ratio of 35:65 to get the average price at $443.50 per tonne.
The BERC has been fixing the LPG prices for the private sector operators within the first week of every month since April 2021.
The operators will be able to sell LPG through cylinders of different sizes, like 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 lower prices in June, according to the BERC announcement.
The price of LPG, to be supplied through a reticulated or centralised storage system, will be Tk 86.25 per kg including VAT for June, compared to Tk 99.68 in May.
The retail price of auto-gas, the LPG used in vehicles, was slashed to Tk 50.09 per litre including VAT from the previous Tk 57.52 per litre.
The price of state-owned LP Gas's LPG, however, was 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 is around 100,000 tonnes in total.
Some 35 million LPG cylinders are being used in the business in the country. Around 200 road tankers, 5,000 trucks and 21 cargoes are involved in the business.
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