LPG prices hiked by 2.86pc for Feb

The Bangladesh Energy Regulatory Commission (BERC) on Sunday announced a 2.86 per cent increase in the liquefied petroleum gas (LPG) price for February compared to the previous month.

The new price for a 12kg cylinder now stands at Tk 1,474, up by Tk 41 from January's retail price of Tk 1,433. The revised rates, effective from 6:00 pm Sunday, apply only to customers of private operators.

Citing the Saudi Aramco contract price (CP) for February 2024 as the primary benchmark, BERC Chairman Md Nurul Amin announced the monthly adjustments at a press briefing.

The energy regulator also considered fluctuations in foreign exchange rates and changes in value-added tax (VAT).

For February, the Aramco CP for propane and butane is $630 and $640 per tonne, respectively.

The BERC considered a 35:65 mixture of the two gases to determine an average price of $636.50 per tonne.

Since April 2021, the BERC has been setting monthly LPG prices for private operators within the first week of each 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, 35 kg and 45 kg to consumers at proportionately higher prices in February, according to the BERC announcement.

The price of LPG supplied through a centralised storage system or reticulated system for February is set at Tk 264.50 per cubic meter, including VAT.

For February, the retail price of autogas, the LPG being used in vehicles, was also raised to Tk 67.68 per litre including VAT from Tk 65.67.

The price of state-owned LP Gas's LPG, however, remained unchanged at Tk 591 per 12.5 kg cylinder.

Sources said, currently some 27 LPG operators are doing business although some 58 received licenses to carry out the business.

Some 26 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.

Some 35 million LPG cylinders are being used in 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.

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