The price of Liquefied Petroleum Gas (LPG) substantially declined in the international market in March but its implementation in the local market is yet to come.
State-run Saudi Aramco has cut its March contract price for propane at $855 a tonne, down $115 from the February level. Butane price for March 2014 was also cut to $870 a tonne, down $100 from February level of $970, according to LPG Australia website.
"We will revise the price of LPG within two or three days as the price of propane and butane both came down by $100 to $115 per tonne respectively," Bashundhara LP Gas Ltd and Sunderban Industrial Complex general manager Md Jahidul Islam told the FE Monday.
"The propane and butane with newly (March) adjusted price will hopefully reach to seaport by the middle of this month. But we will revise it due to a substantial decline in the global market," he said.
In the last two months --January and February-- contract price, fell around $130 on per tonne of propane while $255 on per tonne of butane.
Plant gate prices of 12 kg LPG cylinder of Kleenheat or Petragaz is now Tk1,450, Bashundhara Gas Tk1,451, Total Gaz Tk1,420 and Jamuna Gas Tk1,434.
The gap between prices at the LPG plant gate and the retail level is Tk100 to Tk150 per cylinder due to transport cost and profit of distributor and retailer.
Regarding the downtrend in international market, Petredec Elpiji Ltd General Manager Md Saidul Islam said, "The demand of LPG increases in the winter season, so its price also increases. But in summer the demand and price both decreases."
LPG is a combination of butane and propane with 70:30 proportions. The annual consumption of LPG in Bangladesh is around 100,000 tonnes and 80 per cent of it imported and Bangladesh Petroleum Corporation (BPC) produces the rest 20 per cent.
The LPG is mainly imported from Malaysia, Indonesia, Vietnam and Singapore, China.
LPG price declines in int\\\'l market
Sonia H Moni | Published: March 04, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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