The Bangladesh Energy Regulatory Commission (BERC) has reduced the price of private operators' liquefied petroleum gas – or, LPG – by Tk50 to Tk1,178 per 12-kg cylinder at the retail level.
The BERC at a press briefing on Monday set the price of LPG, including VAT, at Tk98.16 per kg from Tk102.33 per kg in December.
The LPG cylinder price has dropped for the second time in a row following a fall in prices of propane and butane – the raw materials of LPG – set by Saudi contract price.
Earlier in December, the price was cut at 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 declined to $740 and $710 per tonne respectively from the previous price of $795 and $750 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 yesterday.
The other members of the BERC were present at the event.
Meanwhile, the price of autogas for motor vehicles has also been cut down to Tk54.94 from the present price of Tk57.24 per litre, while the price of per kg centrally controlled (reticulated) LPG has decreased from Tk99.08 to Tk94.94.
The BERC chairman said the price of the state-owned LP Gas Company's LPG will remain unchanged as it has no relation with the global market price.
According to industry insiders, the Saudi CP is normally announced at the end of every month to make it effective for the next month, and it takes 7-10 days for a shipment of the fuel to arrive in the country.
Most Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP and market it locally.
Responding to a question, the BERC chairman said the commission will take initiatives to install an electronic dashboard at retail LPG outlets to ensure sales of the products at the proper rate to be fixed by the BERC.
The BERC for the first time fixed the retail-level LPG price on 12 April after holding a public hearing to comply with a High Court order.