The Bangladesh Energy Regulatory Commission (BERC) has raised liquefied petroleum gas (LPG) prices at a single jump, fixing the new price of a 12-kg cylinder at Tk1,837 after a Tk252 increase.
The new price was announced on Sunday afternoon for the month of October and takes effect immediately.
This follows a price reduction in September, when the rate for a 12-kg cylinder was cut by Tk13 to set it at Tk1,585, down from the previous Tk1,598.
However, a severe shortage has gripped the market since 22 September, during which cylinders fixed at Tk1,585 were sold to consumers for up to Tk2,500.
Reports from two intelligence agencies revealed that several LPG operators were scheming to reap large profits by creating an artificial gas cylinder crisis.
According to government intelligence data, many operators hoarded gas in advance within their tankers or kept LPG cargo vessels floating near the maritime border of the Bay of Bengal prior to 30 September.
Following notifications sent to top government levels by the intelligence agencies, Energy Minister Iqbal Hassan Mahmood convened a meeting with the LPG Operators Association of Bangladesh (LOAB) at the Secretariat on Saturday, held in the presence of the Commerce Minister Khandakar Abdul Muktadir.
Pointing to import statistics from various agencies and the National Board of Revenue (NBR), which showed that LPG had been imported in adequate quantities to meet demand, authorities questioned LOAB leaders on why an artificial crisis was created and inflated prices were charged.
Denying the allegations, LOAB representatives stated that increasing LPG prices significantly could help restore market stability, as import costs in the global market have risen slightly owing to the Middle East war and increased freight charges.
