After two rounds of reduction, the price of 12kg LPG (liquefied petroleum gas) cylinders has been increased by Tk62 to be sold by private operators effective for this month.
Under the new price, a 12kg LPG cylinder will now cost Tk 1,240 up from the previous price of Tk 1,178 in January, including the value-added tax (VAT). Meanwhile, the price of gas used in motor vehicles has also been increased from Tk 54.94 to Tk 57.81 per litre, while the price of per kg centrally controlled (reticulated) LPG has increased from Tk94.94 to Tk100.10.
The Bangladesh Energy Regulatory Commission (BERC) announced the new prices at a virtual press conference on Thursday and said it will come into effect from 6:00pm of the day.
However, the price of the state-owned LP Gas Company's LPG will remain unchanged as it has no relation with the global market price. The official price of 12.5 kg LPG has remained at Tk 591.
Making the announcement, BERC Chairman Abdul Jalil said the price of retail LPG has witnessed the rise as the bulk LPG of Saudi contract price (CP) has increased globally at the effect of volatility due to Covid-19 recovery trend and also for the brewing tensions between Ukraine and Russia.
"Saudi CP price will go up to $775 from the previous price of $420 per metric ton. Bangladesh's private LPG operators buy the bulk LPG on the basis of the Saudi CP," he told reporters at the virtual briefing.
Earlier, in January, the price of LPG was reduced by Tk50, while in December, the price was cut to Tk1,228 from Tk1,313 at the retail level after five months of consecutive hikes.
In July-November last year, the country saw a Tk471 rise in a 12kg cylinder provided by the private operator.
Saudi contract price of propane and butane has increased to $775 per tonne on average from the previous price of $740 and $710 per tonne, said BERC Chairman Abdul Jalil, during the announcement of new LPG prices.
Bangladesh's private LPG operators buy the bulk LPG on the basis of the Saudi contract price, he told reporters at the virtual briefing.
The BERC for the first time fixed the retail-level LPG price on 12 April 2021 after holding a public hearing to comply with a High Court order. Since then, the prices have been updated every month.
The other members of the BERC were present at the event.