The price of liquefied petroleum gas (LPG) has been hiked by Tk6.60 per kg to Tk113.58 per kg for the month of October as compared to the previous price of Tk107 per kg in September.
The price of a 12kg LPG cylinder provided by private companies has been hiked by Tk79 to Tk1,363, which previously stood at Tk1,284.
Md Nurul Amin, chairman of the Bangladesh Energy Regulatory Commission (BERC), announced the new price at a press briefing on Monday and said that it will come into effect from 6pm.
Prices of other sizes of LPG cylinders – from 5.5kg to 45kg – will go up rationally, he added.
Nurul Amin said the commission has set the price based on the prices announced by Saudi Aramco in October, that the LPG raw materials propane and butane average price is $609.75 per tonne.
On the other hand, the dollar exchagne rate is estimated at Tk13.08 for October, which was Tk112.91 last month, he added.
As per the BERC decision, the price of "auto gas" (LPG used for motor vehicles) also increased to Tk62.54 per litre (including VAT) from Tk 58.87 per litre. The increase is Tk3.67 per litre.
The price of reticulated LPG has also increased to Tk109.79 per kg, which was Tk103.18 per kg in September. The increase is Tk6.61 per litre.
However, 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%.
Bangladeshi LPG operators normally import their products from the Middle-East market on the basis of Saudi Contract Price.
LPG witnessed the highest price at Tk1,498 (per 12kg cylinder) in the local market in February this year following the start of the Russia-Ukraine war in February last year.
Referring to private operators, the BERC chairman also mentioned the country has enough storage of LPG, and there will not be any shortage of supply.
LPG traders not following govt-set prices
In response to a question from journalists, BERC Chairman Nurul Amin said during the field visits last month, it was found that LPG cylinders were not selling at the retail prices fixed by the commission, despite the commitment of private operators.
Through the mobile court, the regulator had fined Tk50,000 a trader for violating the fixed price, he added.
"We are also sending show-cause letters to some traders. However, it is very tough to control [the markets] across the country from the capital city."
Acknowledging that LPG traders were not following government set prices, State Minister for Power, Energy and Mineral Resources Nasrul Hamid on 26 September said, "Monitoring will be increased from now on and action will be taken accordingly."