Govt fixes private LPG price for the first time
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Tuesday
February 07, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
TUESDAY, FEBRUARY 07, 2023
Govt fixes private LPG price for the first time

Energy

TBS Report
12 April, 2021, 01:10 pm
Last modified: 12 April, 2021, 10:16 pm

Related News

  • Bill passed allowing govt to adjust gas, electricity prices without public hearing
  • Energy regulator likely to announce retail power tariff Thursday
  • Bill placed in JS to pave a way for govt to adjust gas, electricity without public hearing
  • Has the energy regulator lost its functionality?
  • Gas prices hiked up to 179% for industries, effective from 1 February

Govt fixes private LPG price for the first time

According to the order, per 12kg LPG cylinder will cost Tk975, which is now being sold at Tk1000 to Tk1100, depending on companies

TBS Report
12 April, 2021, 01:10 pm
Last modified: 12 April, 2021, 10:16 pm
Propane and Butane are the two components of LPG, which Bangladesh imports from the international market. Photo: Salahuddin Ahmed Paulash/TBS
Propane and Butane are the two components of LPG, which Bangladesh imports from the international market. Photo: Salahuddin Ahmed Paulash/TBS

Highlights

  • State-owned 12.5kg LPG cylinder price set at Tk591
  • Private 12kg cylinder price at Tk975
  • Per litter auto gas price at Tk47.92

The government for the first time has taken the pricing authority of Liquefied Petroleum Gas (LPG) marketed by private companies in its hand by re-fixing its price at the retail level.

The Bangladesh Energy Regulatory Commission (Berc), the energy pricing and licensing regulatory of the country, announced the first-ever LPG pricing order on Monday at a virtual press briefing.

LPG distributors have largely controlled its price by far, while the Bangladesh Petroleum Corporation (BPC) was responsible for the portion owned by the state.

According to the order, per 12kg LPG cylinder will cost Tk975, which is now being sold at Tk1000 to Tk1100, depending on companies.

Meanwhile, the retail price of the state-owned LP Gas Limited's 12.5kg cylinder will cost Tk591, instead of the existing price of Tk600.

"The order has been prepared based on information found in the public hearing and other data provided by the operators. The price will be adjusted every month based on the Saudi Contract Price (CP) of Propane and Butane, the raw materials for the cooking gas," said Berc Chairman Md Abdul Jalil while announcing the order.

In a response to a question, the Berc chairman further added that legal actions will be taken against those who try to sell at prices higher than the stipulated prices.

However, the LPG Operators Association of Bangladesh (LOAB) rejected the order claiming that their opinion and demand have not been reflected in the order.

"We always wanted an integrated and combined LPG pricing. But Berc's LPG pricing announcement is an arbitrary decision, which is not acceptable to us," said Azam J Chowdhury, president of the LOAB.

"Many areas of operating costs have not been considered in the order. Therefore, we have decided to write to Berc to revise the order to address the gaps," he added.

Earlier, the energy regulatory commission held a public hearing on 14 January. Following a directive of the High Court, the Berc initiated to take the price adjustment charge in its hand. The directive came after a writ petition filed by the Consumer Association of Bangladesh (CAB), which asked the court to ensure consumer rights by fixing a unique LPG price.

Alongside the private investors, the CAB also differed with Berc on its order on different grounds. 

CAB's energy advisor Dr Shamsul Alam said the price order failed to ensure consumer rights.

"The price of government-owned LPG which is being consumed by a specific group is lower. General consumers do not get that LPG. Berc should have lowered the private LPG price more, keeping an option of subsidy to ensure affordable gas for general consumers," he added. 

But the Berc chairman said, "Providing subsidies or not is totally a government's decision."

Berc fixed the LPG price for private distributors, considering the CP as the principle of pricing. CP is the pricing rate of propane and butane, the two major elements of LPG.

Saudi Aramco CP price was at $625 per tonne of propane and $595 per tonne of butane in the last month.

However, in the latest price order, Berc considered the average CP price at $616 per tonne and the remaining part of the price includes ships and traders' premium, import parity, storage and bottling charges, VAT, distribution and retailer charges.

Private distributors opined that the pricing order will damage the LPG industry as many areas of operational costs have not been addressed in the order.

In the order, the retail price of 25kg LPG cylinder was fixed at Tk2,032, 30kg cylinder at Tk2440, 35kg cylinder at Tk2846 and 45kg at Tk3,659.

Bangladesh / Top News

LPG / LPG cylinders / LPG price / LPG Sector / BERC / Bangladesh Energy Regulatory Commission (BERC)

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Illustration: TBS
    Foreign aid for national budget drops by $1 billion: Finance Minister
  • People search for survivors at the intensive care unit of the Iskenderun collapsed state hospital following an earthquake in Iskenderun, district of Hatay, Turkey, February 7, 2023. REUTERS/Benoit Tessier
    Turkey declares state of emergency as deaths from Monday quake cross 5,100
  • Photo: Mumit M
    RMG factories running below capacity due to less work orders: BGMEA chief

MOST VIEWED

  • Bashundhara Group wins bid to supply 8m MT of coal to Rampal power plant
    Bashundhara Group wins bid to supply 8m MT of coal to Rampal power plant
  • European Union Ambassador to Bangladesh Charles Whiteley. Photo: Noor A Alam
    Energy storage key to reach Bangladesh's ambitious 'decarbonisation' goals: EU Ambassador
  • Photo: Collected
    Adani to start power supply to Bangladesh in March first week: Nasrul
  • Shipped Bhola gas to cost higher, yet cheaper than spot LNG
    Shipped Bhola gas to cost higher, yet cheaper than spot LNG
  • Electric power transmission pylon miniatures and Adani Green Energy logo are seen in this illustration taken, December 9, 2022. REUTERS/Dado Ruvic/Illustration/Files
    India rules out involvement in Adani power deal with Bangladesh
  • PMO cuts expenditures for electricity and others: official
    PMO cuts expenditures for electricity and others: official

Related News

  • Bill passed allowing govt to adjust gas, electricity prices without public hearing
  • Energy regulator likely to announce retail power tariff Thursday
  • Bill placed in JS to pave a way for govt to adjust gas, electricity without public hearing
  • Has the energy regulator lost its functionality?
  • Gas prices hiked up to 179% for industries, effective from 1 February

Features

Nimah designed by Compass Architects- Wooden tiles. Photo: Junaid Hasan Pranto

Trendy flooring designs to upgrade any space

10h | Habitat
Benefits of having high ceilings in your new home

Benefits of having high ceilings in your new home

10h | Habitat
Each Reverse Osmosi plant can produce approximately 8,000 litres of drinking water a day for around 250 families. Photo: Sadiqur Rahman

A drop in the ocean of persistent water crisis

11h | Panorama
Photo: Collected

Get your partner a lovely present this Valentine's Day

1d | Brands

More Videos from TBS

30% companies see double-digit growth even in hard times

30% companies see double-digit growth even in hard times

2h | TBS Insight
Challenging time waiting for RMG

Challenging time waiting for RMG

9h | TBS Round Table
"Full Moon Meditation" organized by Department of Theater and Performance Studies, University of Dhaka

"Full Moon Meditation" organized by Department of Theater and Performance Studies, University of Dhaka

9h | TBS Graduates
10 cricketers who have played over 400 T20 matches

10 cricketers who have played over 400 T20 matches

9h | TBS SPORTS

Most Read

1
Photo: Courtesy
Panorama

From 'Made in Bangladesh' to 'Designed in Bangladesh'

2
Leepu realised his love for cars from a young age and for the last 40 years, he has transformed, designed and customised hundreds of cars. Photo: Collected
Panorama

'I am not crazy about cars anymore': Nizamuddin Awlia Leepu

3
Master plan for futuristic Chattogram city in the making
Districts

Master plan for futuristic Chattogram city in the making

4
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo
Economy

IMF approves $4.7 billion loan for Bangladesh, calls for ambitious reforms

5
Belal Ahmed new acting chairman of SIBL
Banking

Belal Ahmed new acting chairman of SIBL

6
Photo: Collected
Crime

Prime Distribution MD Mamun arrested in fraud case

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net