The price of liquefied petroleum gas (LPG) in the international market dropped further, but it is still dearer in the local market.
State-run Saudi Aramco has set its December contract price for propane at $550 a tonne, down by $60 and for butane at $ 570 a tonne, down by $30 from the November level, an industry, according to Reuters.
The prices provide a benchmark against which Middle East sales of liquefied petroleum gas (LPG) to Asia are priced.
"The price of 12 kg LPG cylinder of different companies like Kleenheat or Petragaz, Bashundhara Gas, Total Gaz and Jamuna Gas is same as the last month," said Bodiul Alam, a distributor at Doyaganj in the city, told the FE.
"I have got information that the price might be reduced slightly within next three or four days. As the contract price of LPG for international market dropped further this month after last month's fall," Mr Alam, the owner of Gas Solution, said.
Saudi Aramco, the world's largest oil producer, had earlier set its November contract price (CP) for propane at $610 a tonne, down by $125 a tonne from October.
The company also set the butane at $600 a tonne, down by $165 a tonne month on month.
Regarding the downtrend in 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, but both demand and price increase in winter."
"We might take a decision to decrease the price of LPG by this week. The price might drop by Tk 20 to Tk 40 per cylinder," Mr Islam said.
Plant-gate prices of 12kg LPG cylinder of Kleenheat or Petragaz are now Tk 1,350, Bashundhara Gas Tk 1,400, Total Gaz Tk 1,230 and Jamuna Gas Tk 1,282.
The consumers are able to buy 12 kg LPG cylinder between Tk 1400 to Tk 1450 from. 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 are 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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