Bangladesh regulator cuts LPG prices again

The Bangladesh Energy Regulatory Commission has reduced the prices of liquefied petroleum gas, effective from June, due to a lowering of Saudi Aramco’s price.

The price of a 12-kg cylinder of LPG will be set at Tk 842, down from the previous price of Tk 906, the commission said on Sunday.

The price, at the retail level for the private sector, is set at Tk 65.72 per kg without VAT and Tk 70.17 with VAT. The price for 12 kg, 18 kg, 20 kg, 25 kg and 30 kg cylinders will be set accordingly.

The prices for June were based on the contract prices for May, said BERC Chairman Md Abdul Jalil during Sunday’s announcement.

In April, Saudi Aramco, one of the largest companies by revenue, sold propane at $496 per tonne and butane at $476 per metric tonne.

The price of a 35:65 ratio of propane to butane came to $482.5 per tonne, which was $58.5 less than the cost of the mixture in April, leading to the price cut.

The exchange rate for dollars was Tk 84.95, which had something of an effect as the purchase price dropped.

According to the latest prices, the price of centrally regulated (reticulated system) LPG is Tk 63.47 per litre, or Tk 67.87 with VAT, which is lower than the May price of Tk 73.20.

Autogas price has been set at Tk 41.74 per litre at the retail level, lower than the price of Tk 44.70 in May.

On Apr 12 the price of LPG was set for the first time and the price has been revised each month. The price has been lowered twice in the subsequent months.

But customers say that the price cuts have not been implemented at the field level. In Dhaka, a 12kg gas cylinder is being sold for over Tk 1,000. And, in some remote areas, the market price is below the rate set by the BERC.

Asked about the issue, BERC Chairman Jalil said the implementation of the price cuts is not up to the BERC alone, but requires the cooperation of all.

The BERC also urged people to write to the Ministry of Commerce and the Energy and Mineral Resources Division to implement the lower price.