Bangladesh Energy Regulatory Commission cuts retail LPG prices by 13 taka per 12kg cylinder

The Bangladesh Energy Regulatory Commission (BERC) has lowered the retail price of Liquefied Petroleum Gas (LPG) effective from 6:00 p.m. Wednesday. The price reduction, which amounts to 1.03 taka per kilogram, results in a 13-taka decrease for the widely used 12-kilogram cylinder, bringing the new retail price to 1,585 taka from the previous 1,598 taka.

The regulatory body announced the adjustment following a period of market volatility influenced by global supply trends. While LPG prices surged earlier this year due to geopolitical tensions in the Middle East—specifically causing record price hikes in April—the market has experienced fluctuations over the past two months. This latest adjustment follows a 70-taka increase applied to 12-kilogram cylinders in the previous month.

Under the new price structure, the rate per kilogram of LPG is now set at 132.12 taka, down from 133.15 taka. This rate serves as the basis for calculating the costs of various cylinder sizes available in the market. Despite these regulated adjustments, reports persist that retail sellers frequently charge prices above the commission’s mandated rates, impacting households that increasingly rely on LPG due to domestic natural gas shortages.

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While the price for private sector LPG has been adjusted, the cost for the 12.5-kilogram cylinder supplied by state-owned companies remains unchanged at 825 taka. Conversely, the price for automotive LPG, commonly referred to as Autogas, has seen a slight increase, moving to 73.90 taka per liter from the previous 73.67 taka.

BERC has been responsible for regulating LPG prices since April 2021. The pricing mechanism is largely dependent on the Saudi Aramco Contract Price (CP), which determines the international cost of propane and butane, the primary components of LPG. Each month, BERC adjusts domestic prices by factoring in the Saudi CP alongside the average dollar exchange rate calculated from importer invoices.