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24 March 2023

Business Insider Bangladesh

LPG price goes up by Tk 22.15 per kg, highest in 2 years

UNB || BusinessInsider

Published: 16:31, 2 February 2023  
LPG price goes up by Tk 22.15 per kg, highest in 2 years

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Price of Liquefied Petroleum Gas (LPG) has substantially increased by Tk 22.15 per kg to Tk 124.85 from the previous price of Tk 102.70 per kg for the month of February.

Bangladesh Energy Regulatory Commission (BERC) announced its latest price through a press release on Thursday.

As per the new price, 12kg LPG cylinder cost has increased by Tk 329 as a retail consumer will get it at Tk 1561 instead of previous price of Tk 1,232 including VAT.

LPG prices for other sizes of cylinders – from 5.5kg to 45kg – will go up rationally, said the BERC press release.

An official of the BERC said that the prices witnessed such an excessive rise due to huge increase in the prices of Saudi CP (contract price).

Last month, as per the Saudi CP, the LPG price was $599.59 per metric ton while the current month’s CP was set at $790 per MT with increase by $190.25 per MT, he added.

Bangladeshi LPG operators normally import their products from Middle-East Market on the basis of Saudi CP.

As per the BERC decision, the price of “auto gas” (LPG used for motor vehicles) also increased to Tk 69.71 per litre including VAT from previous Tk 57.41 per litre, up by Tk 12.3 per litre.

The new prices will be effective from 6 pm today (2 February, 2023).

The price of LPG, marketed by state-owned LP Gas Company, will remain the same as it is locally produced with a market share of less than 5 per cent.

The LPG price went up to Tk 1,439 (per 12kg cylinder), in the local market, following the start of the Russia-Ukraine war in February last year. But this month of February witnessed the highest price since Russia-Ukraine began.

Normally, the BERC Chairman announces the LPG price at the beginning of every month through a virtual press briefing.

This time, there was no press briefing as four members out of five including the BERC chairman recently retired from their jobs after expiry of their contracts with the government.

New chairman and or any member for the regulatory body has not been appointed yet, said a BERC official.