The Bangladesh Energy Regulatory Commission (BERC) has announced a fresh hike in the prices of private liquefied petroleum gas (LPG), citing rising shipping costs and trader premiums fueled by the escalating war situation in the Middle East.
According to a BERC press release issued on Sunday, the retail price of private LPG has been adjusted to Tk161.66 per kg. Consequently, consumers will now have to pay Tk1,940 for a standard 12kg cylinder, including VAT.
The new rates came into effect from 6pm on the same day.
The regulator explained that the adjustment was necessitated by the volatile situation in the Middle East, specifically the Hormuz Strait crisis, which has turned the region into a war zone. This instability has led to a significant surge in shipping costs, insurance, and security expenses for importing LPG from alternative sources.
To ensure a steady supply, the commission has re-fixed the freight and trader’s premium at $250.00 per tonne for the interim period. The adjustment also accounted for the Saudi Contract Price (CP), where propane is priced at $750 and butane at $800 per tonne, resulting in a weighted average of $782.50.
Price breakdown
Under the new pricing structure, autogas has been set at Tk89.50 per litre. For households and businesses using reticulated systems, the price is Tk157.91 per kg for liquid LPG, while the gaseous form is priced at Tk341.00 per cubic metre.
BERC also provided a detailed price list for various cylinder sizes, with a 12.5kg cylinder to cost around Tk2,021.
While private LPG prices saw a sharp rise, the price of government-distributed LPG remains unchanged. A 12.5kg cylinder of state-owned LPG will continue to be sold at Tk776.13 at the dealer/retailer level.
