LPG prices fall slightly

The price of liquefied petroleum gas (LPG) has slightly fallen following downward trend in the international market, industry circles said.
 "The price of 12 kg LPG cylinder of different companies like Kleenheat or Petragaz, Bashundhara Gas, Total Gaz and Jamuna Gas has been reduced by Tk 50 this month," said Bodiul Alam, a distributor of Doyaganj in the city.
 "The prices of LPG cylinders now vary between Tk 1,450 and Tk 1,550 while it was Tk 1,500 to Tk 1,600 last month as the international market prices dropped this month," Mr Alam, also the owner of Gas Solution, said.   
Saudi Aramco, the world's largest oil producer, has set its November contract price (CP) for propane at $610 a tonne, down $125 a tonne from its October CP, according to Platts website.
The company also set the butane at $600 a tonne, down $165 a tonne month on month.
The November contract prices are within market expectations, extending the drop for propane for a fifth straight month. Butane is down for a fourth month in a row.
The prices provide a benchmark against which Middle East sales of liquefied petroleum gas (LPG) to Asia are priced.
Industry circles said the Bangladesh market is expected to get the benefits of price fall by next month.
Regarding the downtrend on the international market, Petredec Elpiji Ltd General Manager Md Saidul Islam said, "Generally, the price of LPG decreases in the summer as its demand falls while both demand and price increase in winter."
"But this time the scenario has been changed. The reason might be worldwide lower demand than the production of LPG. As a result, we have reduced the price," he said.
Plant-gate prices of 12kg LPG cylinder of Kleenheat or Petragaz is now Tk 1,350, Bashundhara Gas Tk 1,400, Total Gaz Tk 1,350 and Jamuna Gas Tk 1,282.
LPG is a combination of butane and propane with 70:30 proportions. The annual consumption of LPG in Bangladesh is around 100,000 tonnes. Some 80 per cent of the demand is imported while Bangladesh Petroleum Corporation (BPC) produces the rest 20 per cent.
The LPG is mainly imported from Malaysia, Indonesia, Vietnam, Singapore and China.

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