Government reduces LPG price by Tk 55 in public interest

❐ Staff Reporter

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Breaking from the trend of continuous price hikes, the Bangladesh Energy Regulatory Commission (BERC) has reduced the price of liquefied petroleum gas (LPG) for the month of June. The price of the most widely used 12-kg LPG cylinder has been reduced by Tk 55 to Tk 1,885.

BERC announced the new price in a notification on Tuesday, June 2. The commission said the new price will be effective from 6 pm on Tuesday.

According to BERC data, the June LPG price has been adjusted taking into account Saudi Aramco’s May Saudi Contract Price (Saudi CP) of propane and butane in the international market.

BERC officials expressed hope that the public will benefit from the price reduction.

The retail price of LPG in the private sector has been set at 157 taka 6 paisa per kg at the new fixed price. At the same time, the consumer price of autogas has been set at 86 taka 93 paisa per liter.

Earlier in May, the retail price of LPG was Tk 161.71 per kg and the price of autogas was Tk 89.52 per liter. Accordingly, the prices of both LPG and autogas have decreased slightly in June.

BERC’s new announcement has also revised the prices of LPG cylinders of different sizes. The new prices include 5.5 kg cylinder at 864 taka, 12.5 kg at 1,963 taka, 15 kg at 2,356 taka, 16 kg at 2,513 taka, 18 kg at 2,827 taka, 20 kg at 3,141 taka, 22 kg at 3,455 taka, 25 kg at 3,927 taka, 30 kg at 4,712 taka, 33 kg at 5,183 taka, 35 kg at 5,497 taka and 45 kg at 7,068 taka.

However, the price of LPG in the public sector has been kept unchanged.

BERC said that as per the order of February 23, the consumer price of a 12.5 kg cylinder of government LPG will remain at 776 taka and 93 paisa.

Although prices were slightly reduced in June, the pressure on consumers due to the abnormal increase in LPG prices in recent months has not yet fully subsided.

Last May, the price of a 12-kg cylinder was kept unchanged at Tk 1,940. Earlier, on April 19, BERC increased the price of a 12-kg cylinder by Tk 212 to Tk 1,940.

Earlier, during the monthly price adjustment on April 2, the price of a 12-kg cylinder was increased by Tk 387 from Tk 1,341 to Tk 1,728. At the same time, the price of autogas also increased from Tk 61.83 per liter to Tk 79.77 per liter.

As a result, from the beginning of April to April 19, the price of a 12-kg cylinder increased by a total of Tk 599 in two phases, reaching Tk 1,940, in just 17 days, which caused widespread concern among consumers.

Currently, despite the reduction of 55 taka for the month of June, the price of a 12-kg cylinder is still 544 taka higher than in February. As a result, despite the announcement of a price reduction, LPG is still relatively expensive for ordinary consumers.

Meanwhile, there have been complaints of LPG being sold in the market at prices higher than those set by the commission for a long time. Consumers in various areas have often complained of being forced to buy cylinders at prices higher than those set.

In this context, BERC, in its Tuesday notice, warned again that LPG storage and bottling centers, distributors, retailers, or any stage of the supply chain cannot sell bottled LPG, reticulated LPG, or autogas at a price higher than the price set by the commission.

Energy sector stakeholders believe that fluctuations in international market prices, import costs, and foreign exchange rates may affect LPG prices in the future.

To ensure real relief for consumers, it is necessary not only to set prices, but also to ensure that those prices are effectively implemented in the market.