12kg LPG cylinder price climbs to Tk 2,060 for November

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The price of a 12kg liquefied petroleum gas (LPG) cylinder has increased by Tk 223 to Tk 2,060, following a rise in international prices and revisions to supply-chain charges announced by the Bangladesh Energy Regulatory Commission (BERC) on Monday.

The new rate took effect after 8:00 PM on Monday.

Despite the previous official price increase in October, when the 12kg cylinder rate was raised by Tk 252 to Tk 1,837, consumers have continued to pay considerably more in the market. In Dhaka, cylinders have reportedly been selling for Tk 2,200 to Tk 2,300.

The price of autogas, primarily used by motor vehicles, has also gone up. BERC has set the November retail price at Tk 91.95 per litre, compared with Tk 84.62 in October.

According to the commission, Saudi Aramco's November contract prices stand at $720 per tonne for propane and $780 for butane. Based on a mixture containing 35% propane and 65% butane, the average Saudi Contract Price (CP) for LPG has reached $759 per tonne, up from $712.50 in October.

The $46.50 increase in the international benchmark accounts for approximately Tk 74, including VAT, of the latest increase in the price of a 12kg cylinder, according to BERC's calculation.

The commission has also adjusted charges for LPG storage, bottling, distribution and retail sales. For the latest pricing calculation, it considered shipping costs and importers' premiums of $250 per tonne, alongside an exchange rate of Tk 123.46 per US dollar.

The storage and bottling charge for privately supplied LPG has been set at Tk 23.48 per kg, including transportation from bottling plants to distributors' warehouses.

BERC has instructed all participants in the supply chain, including bottling companies, distributors and retailers, not to sell LPG above the commission's approved rates.

Bottling companies must bear the cost of delivering cylinders to distributors' warehouses and cannot collect additional transportation fees beyond the prescribed charges.

The regulation of LPG prices followed a legal challenge filed with the High Court in 2016 over the process of setting consumer prices in Bangladesh. On August 25, 2020, the court issued an order in response to the petition.

BERC subsequently began fixing prices for both government and private-sector LPG on April 12, 2021. Since then, private-sector prices have been revised monthly in line with Saudi Aramco's announced international propane and butane prices.