LPG prices cut further

The price of liquefied natural gas (LPG) has decreased for the second time in two months thanks to lower prices in the international market.

The Bangladesh Energy Regulatory Commission (BERC) yesterday cut the retail price of LPG of private companies by more than 7 per cent to Tk 842 for every 12-kilogramme (kg) cylinder.

The new price will come into effect from today, BERC Chairman Abdul Jalil said while announcing the new price at a virtual press conference.

However, the commission did not re-fix the price of LPG sold by the state-owned Liquid Petroleum Gas Ltd (LPGL). The current price of gas sold by the company in 12.5kg cylinders is Tk 591.

The new price of LPG used in cars is Tk 41.74 per litre, down from the current price of Tk 44.70.

The regulator had fixed the price of LPG for the first time in the country on April 12.  It had said that the price would be adjusted every month in line with the international market.

Local companies import propane and butane, the main ingredients for making LPG, from different countries.

Saudi Aramco publishes the price of these two components of LPG every month. This is known as the Saudi contract price or Saudi CP. BERC has adjusted the price of LPG in the country on the basis of the base price of this Saudi CP.

LPG prices have been falling in the world market for a few months now.

The BERC chief said they re-fixed the new price as per the fresh rate of the Saudi CP for May.

According to Jalil, the price has been adjusted considering changes to three factors, which are the Saudi CP, the exchange rate of the taka against the dollar, and the VAT rate.

However, many consumers expressed concerns over the implementation of the new price as the regulatory body could not execute the decision of its previous price rates.

"One can sell the cylinders at a lower price than the adjusted ones, but not at a higher price. Letters have been sent to the commerce secretary and the energy secretary asking them to instruct the local administration to play a role in the implementation of the commission rates," he said.

Earlier on April 29, the BERC also brought down the retail price of the fuel by around 7 per cent to Tk 906 for every 12kg cylinder.