Bangladesh LPG Prices Raised by 70 Taka per Cylinder Amid Supply Constraints

The Bangladesh Energy Regulatory Commission (BERC) has announced an increase in the retail price of liquefied petroleum gas (LPG), further straining households already grappling with ongoing pipeline gas shortages. Effective Sunday evening, the price per kilogram of LPG rose by 5.85 taka, resulting in a 70-taka hike for the widely used 12-kilogram cylinder, which now retails at 1,598 taka.

According to the regulatory body, the price adjustment follows a shift in the international market, where LPG costs have fluctuated due to regional tensions in the Middle East. BERC sets domestic prices based on the Saudi Aramco Contract Price (CP) for propane and butane, the primary components of LPG, which the commission converts using a weighted average of import invoice costs and exchange rates.

This latest adjustment marks a reversal from the downward trend observed over the previous two months. In June and July, the price of a 12-kilogram cylinder had decreased significantly, dropping to 1,528 taka last month. The volatility remains stark compared to April, which saw record-high increases following global supply chain disruptions.

While the BERC has set the new rate at 133.15 taka per kilogram, consumers continue to face challenges at the retail level. Reports from the market suggest that despite the commission’s mandate, many vendors ignore the official price list, frequently charging more for standard household cylinders. With domestic pipeline gas supplies remaining unreliable, many families are increasingly dependent on LPG for cooking, leaving them vulnerable to these frequent price fluctuations.

In the same announcement, the commission confirmed that the price for a 12.5-kilogram cylinder of government-supplied LPG will remain unchanged at 825 taka. Conversely, the price of Autogas, used in vehicles, saw a reduction to 70.40 taka per liter, down from the previous rate of 86.93 taka. BERC has been responsible for setting monthly LPG prices since April 2021 to ensure market stability, though enforcement of these rates remains a persistent concern for end-users.