The price of a 12 kg cylinder of liquefied petroleum gas (LPG), mostly used for cooking, has been reduced by Tk35 to Tk1,200 for October, Bangladesh Energy Regulatory Commission said on Sunday.
The retail price of per kg LPG was Tk99.65 in September, which has been reduced to Tk96.78 for the current month, according to the new tariff announced by the commission at a media briefing.
"The new rate will be effective from 6pm Sunday," said the commission Chairman Md Abdul Jalil while announcing the tariff.
He said the price of other sizes of gas cylinders will be determined as per the per kg LPG rate.
According to Md Abdul Jalil, the price has been adjusted considering the average of Saudi Aramco's contract price (CP) rate of Propane and Butane at $570.50 per tonne, which was $637 per tonne in September.
Saudi Arabian company Aramco publishes the prices of these two components of LPG every month, known as Saudi Aramco Contract Price (CP). Bangladesh energy regulator adjusts the LPG price in the country based on the Saudi CP.
Md Abdul Jalil said the LPG price in the local market could have been reduced more, following the Saudi Aramco CP. But they could not slash the rate considering the stronger greenback.
The regulatory commission has also reduced the reticulated LPG price to Tk96.78 per kg for October, from Tk99.65 kg of September.
Besides, the retail price of per litre auto gas has been lowered to Tk55.92 from Tk57.55 in previous month.
However, prices of state-owned LP Gas Limited's cylinders remain unchanged.
At present, the country consumes around 1 lakh tonnes of LPG per month, of which around 99% is being provided by private operators.