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09 August 2022

Business Insider Bangladesh

12-kg LPG price hiked by Tk 12

BI Report || BusinessInsider

Published: 15:23, 3 July 2022   Update: 16:50, 3 July 2022
12-kg LPG price hiked by Tk 12

Representational collected photo

The Bangladesh Energy Regulatory Commission (BERC) on Sunday hiked the price of liquefied petroleum gas or LPG by Tk 12 following two consecutive price cuts in the previous two months.

With this latest price hike, a 12-kg cylinder will now cost Tk 1,254, announced BERC Chairman Abdul Jalil at a virtual press briefing on Sunday.

LPG price was hiked based on the international market price and valuation of the taka (Bangladeshi currency) against the US dollar. 

Addressing a press conference, the BERC chairman said that the price of LPG has dropped in the global market — propane and butane in Saudi CP fell by $25 — but the taka has depreciated against the dollar, and so have other expenses.

Therefore, he added, the price of LPG in the country has been increased by one taka per kg only.

In June, the price for a 12-kg cylinder was reduced to Tk 1,242. It was a Tk 93 adjustment from the price of Tk 1,335 per 12-kg cylinder LPG. In May, the price for a 12-kg cylinder was reduced by Tk 104 from Tk 1,439.

Earlier, in April, the price was hiked from Tk 1,390.56 to Tk 1,439, while in March the price per 12-kg cylinder was increased to Tk 1,390.56 from Tk 1,240.   

Prior to that, the price increased in February as BERC set the price per kg LPG at Tk 103.34 from Tk 98.17. Then, a 12-kg cylinder price was set at Tk 1,240 from Tk 1,178.

On April 12, 2021, BERC announced that the price of LPG would be adjusted according to the rate fixed by Saudi Aramco and that rate it would be considered as the base price while other commissions would remain unchanged. Since then, BERC has been announcing LPG rates every month since the announcement. ‎

Before that, the price of LPG depended on related companies.

It is noteworthy that the Russia-Ukraine crisis has made the international fuel market volatile. Consequently, the prices of fuel oil, LNG and LPG climbed in the beginning, but now they have a lowering trend which is also impacting the local market of Bangladesh.