The retail price of a 12kg LPG (Liquefied Petroleum Gas) cylinder, provided by private gas producers, has been lowered by Tk64, from Tk906 to Tk842, starting June.
The Bangladesh Energy Regulatory Commission (Berc) declared the price on Monday at a press conference while announcing the LPG tariff order for June.
The consumer price adjustment came following a price decline in the international market for LPG raw material (Propane and Butane), said the commission's chairman Abdul Jalil, adding that "the new rates will be effective from the beginning of June."
He said there were three factors involved in the price adjustment – the rate of Saudi CP (Contract Price), the exchange rate of the dollar, and some VAT changes."
As per the new price, a kilo of LPG will cost Tk70.17, which was Tk75.49 in May, a drop in price of Tk5.32 per kg, which will apply to LPG cylinders of all sizes.
However, the Berc has not reduced the price of LPG of the state owned LPG producer, LP Gas Limited, because the cost of raw materials has not changed for them. The retail price of the state owned 12.5-kg LPG cylinder will remain Tk591.
Starting June, the price per kg of gas for cars –especially LPG, used as vehicle fuel – has been lowereded to Tk41.74 from Tk44.60.
Among others, Berc members, Maqbool E-Elahi Chowdhury, Mohammad Abu Faruk, Bazlur Rahman, Secretary Rubina Ferdous, Deputy Director Kamruzzaman and others, were present at the press conference.
Private operators used to set their own prices, but Berc set the price of public and private LPG for the first time on 12 April, stating that the commission would adjust the retail price of LPG based on Saudi CP of Propane and Butane.
However, the LPG Operators Association of Bangladesh has been objecting to such price adjustments since the outset. Therefore, there has been little impact of this tariff order in the country and on the business practices of private operators.