12kg LPG cylinder price cut by Tk 55

After the past several months' hikes, the Bangladesh Energy Regulatory Commission (BERC) Tuesday cut the price of liquefied petroleum gas (LPG) at the retail level by around 2.83 per cent for June.
The price of 12kg LPG cylinders was fixed at Tk 1,885, Tk 55 lower than the previous month's price of Tk 1,940.
The reduced price took effect from 6:00pm on Tuesday.
Despite the BERC fixing higher prices over the past several months, a 12kg LPG cylinder is now being sold at around Tk 1,800 at the retail level due to a drastic fall in market demand as many consumers are shifting to alternative cooking appliances like induction electric stoves to cope with the rising costs, traders say.
Sources say the retail price of a 12kg cylinder rose by Tk 599 (44.66 per cent) within one and a half months from Tk 1,341 in March to Tk 1,940 in mid-April, resulting in the shift of consumers' choices for alternatives.
In April, the price of LPG was increased by the BERC twice, once on April 2 by Tk 387 to Tk 1,728 and later on April 19 by Tk 212 to Tk 1,940 to help consumers look for alternatives, industry insiders say.
The price of LPG supplied through a reticulated system or centralised storage system was also lowered to Tk 340.70 per cubic metre for June.
The private sector can sell LPG in various cylinder sizes - 5.5kg, 12.5kg, 15kg, 16kg, 18kg, 20kg, 22kg, 25kg, 30kg, 35kg, and 45kg - to consumers at the proportionate price in June.
For June, the consumer-level price of autogas was lowered by Tk 2.59, setting the new rate at Tk 86.93 per litre from Tk 89.52 per litre, including value-added tax (VAT).
The price of a 12.5kg cylinder supplied by government companies remained unchanged at Tk 776.93.
The commission has been adjusting retail LPG prices every month since April 2021.
It adjusts cooking fuel prices for the domestic market based on the Saudi Aramco contract price (CP).
Besides, it factors in fluctuations in foreign exchange rates and changes in VAT. The Saudi Aramco CP of propane and butane is $760 per tonne and $820 per tonne, respectively, for June trading.
The BERC calculated the price of a propane and butane mixture in a ratio of 35:65 at $799 per tonne.
Sources say around 27 LPG operators are currently in business, although licences were issued to about 58 companies.
Some 26 operators import about 1.50 million tonnes of LPG from the international market per month, 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 deploys around 200 road tankers, 5,000 trucks, and 21 cargo vessels nationwide.

Azizjst@yahoo.com