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LPG Gas Price in Bangladesh


Published : 23 Feb 2022 01:11 AM | Updated : 01 Mar 2022 03:46 PM

Liquefied Petroleum Gas (LPG) cylinder is a portable gas supply source for different sectors like daily household use, factory production, restaurant cooking, etc.

These LPG gas cylinders are mostly imported, as the locally-produced LPG meets only 2 percent of the country’s demand.

Bangladesh consumes over a million tonnes of LPG a year. Bangladesh Energy Regulatory Commission (BERC) sets the LPG gas price every month for national use in compliance with the international market price.

As found, the latest price of LPG is Tk 98.17 per liter inclusive Value Added Tax (VAT).

LPG Gas Updated Price (Effective from January 3, 2022)

The newly set price of the LPG 12 Kg cylinder is Tk 1,178, which was Tk 1,228 earlier. BERC reduced LPG price by Tk 50 for a 12 kg cylinder at retailer level from January 3.

BERC has also reset autogas price to Tk 54.94 per liter, while LPG costs Tk 98.17 per liter at the retailer level inclusive VAT.

According to the BERC decision, new prices at the retailer level for the private sector are the following:

Per Cylinder

Price (retailer level)

5.5 kg

540 TK

12 kg

1,178 TK

12.5 kg

1,227 TK

15 kg

1,473 TK

16 kg

1,571 TK

18 kg

1,767 TK

20 kg

1,963 TK

22 kg

2,160 TK

25 kg

2,454 TK

30 kg

2,945 TK

33 kg

3,240 TK

35 kg

3,436 TK

45 kg

4,418 TK


According to the BERC details, the price of LPG was fixed at $740 and $710 per metric ton for January 2022 by Saudi Contract Price (Saudi CP) as per Propane and Butane ratio 35:65. The Saudi CP price was fixed at $720.50 per metric ton, considering the Propane and Butane average ratio.

Fluctuation of LPG Price in the Past and Present

From January 3, 2022, BERC fixed the price of LPG at Tk 98.17 per kg, including VAT. It decreases Tk 4.15 per kg, or 4%, compared to the previous rate. It cost Tk 102.32 per kg LPG in December 2021.

The price of a 12 kg LPG came down to TK 1,178 from TK 1,228. Consumers, therefore, can save Tk 50 for a 12 Kg cylinder.

After five months of consecutive price hikes, the LPG price was cut in December 2021. While the price of reticulated LPG stands at Tk 98.17 in January, the cost of Autogas, or LPG used in vehicles, has been fixed at Tk 54.94 per liter.

This is the second time the price has dropped, following a decrease in the cost of propane and butane set by Saudi CP. LPG price is fixed every month based on Saudi CP, VAT, and the exchange rate of the US dollar, according to BERC. The exchange rate for the US dollar has been calculated at TK 85.85.

The price will remain unchanged for government-supplied LPG as these factors do not count.

Daily Consumption of LPG in Bangladesh 

The most significant part of the LPG manufacture is used in commercial sectors, domestic cooking chores, and the next largest as raw material for chemical plants.

LPG is commonly used as fuel for gas barbecue grills and gas cooktops and ovens, gas fireplaces, and portable heaters. In Bangladesh, LPG cylinders for gas wielding are common. It is also used as an engine fuel and for backup generators.

The potential market for LPG remains in rural regions of Bangladesh. Rural consumers mainly depend on biomass, biogas, and firewood as cooking fuel. In addition, most of them use clay stoves.

Therefore, the rural and semi-urban populations seek an improved lifestyle and are transitioning into using gas stoves with LPG connections. It gives them a more hazard-free and improved cooking environment.

Increasing Demand for LPG Cylinder in Bangladesh 

According to different survey and media reports, 20 percent of the total population in Bangladesh use LPG gas for cooking.

The number is even growing more extensive. But the local production can supply 2 million tonnes of cooking gas annually, which is less than the growing demand.

It is a sign that a 13 Kg LPG gas cylinder is equivalent to 180 kWh of energy, equal to 25 Kg of coal or 91 Kg of wood.

Unlike diesel or kerosene, LPG can be stored nearly unchanged without degradation, compared to liquefied natural gas. It also is a reason why this is getting more demanding.

Advantages of LPG Gas Usage

LPG is a clean-burning fuel. It has no soot, and burners have a longer life. On top of that, no spillage occurs as it vaporizes at atmospheric temperature and pressure. That is why maintenance cost is low.

The flame temperature is instantly controllable. So, the effects of erosion are significantly reduced. LPG prevents scaling and decarbonization of parts.

Moreover, the gas is an environmentally-friendly fuel, emitting minimal sulfur content and sulfur-free emissions. It can be used for a variety of applications without any pollution.

Its efficiency rate is very high with a direct firing system Instant heat for faster warm-up and cool-down.

LPG is easily portable, and the cylinder can be used several times. So, it is considered suitable for easy transport. Because of its eco-friendly nature, it is safe and easy to use. LPG generates the minor greenhouse gas emission of all the available fossil fuels in Bangladesh.

Disadvantages of LPG 

There are many disadvantages of using LPG cylinders, along with a lot of benefits. There remains a high possibility of the LPG cylinder's explosion if not appropriately maintained.

However, the cylinders never explode without a valid reason. Blasts are more likely to occur if exposed to extreme heat or fire, especially if there is a fault in the ring or regulator or any leak in the cylinder.

In addition, LPG gas is not that available in every rural area. Due to the unavailability of natural gas, many people use clay or oil stoves. However, many people avoid using LP gas as the price of cylinder gas has gotten expensive over the years.

LPG prices have gone up many times in the last year. Prices were lower in June compared to May 2021 but went up in mid-July the same year.

In July, the highest price of a 12 kg cylinder was Tk 691, which reached Tk 742 in June and Tk 908 in May.

On top of that, in August, 12 kg gas was Tk 993. So, as in December 2021, it had gone up to 1,228 TK per cylinder, whereas that year's natural gas price stayed fixed.

Moreover, it is classified as highly flammable if it contains more than 0.1%Butadiene. It is also classified as a carcinogen and mutagen. LPG gas is non-corrosive, but it can dissolve lubricants, certain plastics, or synthetic rubbers.

Conclusion 

The average monthly demand for LPG on the local market is around 8.3 lakh tonnes, some 95 percent of which is met through imports, mainly from Saudi Arabia.

There are two dozen private companies in Bangladesh that bottle imported LPG. We can also say that the demand for LPG is rising because of the unavailability of alternative fuels and piped gas.

Read More:

Price of private LPG goes up

LPG import to stop price anomalies

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