A price increase for LPG will begin on September 1

A price increase for LPG will begin on September 1

Special Desk :    |    ০৬:১৬ পিএম, ২০২১-০৮-৩১

Due to the price of imported gas continuing to rise across the country, consumers will soon have to pay more to buy liquefied petroleum gas (LPG). The government's energy regulator announced on Tuesday that the new price is in line with the international market.

Customers will need to pay Tk 1,033 instead of Tk 993, a 40 percent increase, for a 12 kg LPG starting September 1.

The price of the same amount of LPG was 102 takas higher last month, and the price of other quantities was 102 takas higher, as well.

According to the Bangladesh Energy Regulatory Commission (BERC), the local gas operators import bulk petroleum from the Middle East, thus it was necessary to adjust the price of LPG with Saudi Contract Price (CP).

BERC chairman Abdul Jalil commented, "As the Saudi crude oil price has increased in international markets, we shall fix the new price accordingly." He added that "If the price falls, we shall act accordingly." 

Its LPG price remains unchanged at Tk 591 per 12.5 kg since LP Gas Company Ltd sells products from condensates produced in local oil fields and doesn't deal with Saudi CP.

Some 20 private companies dominate the local LPG market with more than 95 percent market share through an annual import of 1.2 million metric tons while the LP Gas Company supplies only 25,000 mts.

Based on the Saudi CP, the BERC also refixed the price of autogas price at a higher rate of Tk 50.56 instead of Tk 48.71 per liter.

BERC Md Abdul Jalil announced the new LPG price through a virtual briefing while other members of the commission were present online.

Usually, Armaco, the largest company in Saudi Arabia, announces its CP for bulk LPG at the concluding state of every month for the next month’s transactions.

Most Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP and market it locally.

The BERC for the first time fixed the retail-level LPG price on April 12 after holding a public hearing to comply with a High Court order.