12kg LPG price rises by Tk 223

The Bangladesh Energy Regulatory Commission (BERC) on Monday raised the retail price of a 12kg liquefied petroleum gas (LPG) cylinder by Tk 223 to Tk 2,060 for November.

Effective from 8:00 pm on Monday, the new rate follows a Tk 252 increase in October, when the price rose from Tk 1,585 in September.

Since introducing monthly price adjustments in April 2021, BERC has increased the price of a 12kg cylinder by Tk 754, or 57.73 per cent, from Tk 1,306 in January. As traders often ignore the official rates, consumers fear they may have to pay Tk 2,500 or more unless authorities strictly monitor the market.

BERC Secretary Md Nazrul Islam Sarkar said privately marketed LPG was reset at Tk 171.68 per kg, up by Tk 18.62 from Tk 153.06 in October, while autogas rose to Tk 91.95 a litre from Tk 84.62. 

State-owned LP Gas PLC's 12.5kg cylinder price also jumped by Tk 1,083 to Tk 1,860 from Tk 777, though it meets only 1 per cent of the 18 lakh tonnes annual demand.

At a 29 October hearing, BERC's technical committee proposed a Tk 139 hike, alongside Tk 80 dealer and Tk 70 retailer commissions. Instead, BERC set dealer and retailer commissions at Tk 85 and Tk 70, up from Tk 50 and Tk 45, and raised the autogas station commission to Tk 9.23 a litre from Tk 8.

Although 23 of 35 registered companies can import LPG, National Board of Revenue data showed only 10 imported in September. At the hearing, Omera, Delta, Petromax and Meghna Group sought to raise the existing Tk 200 cylinder commission to Tk 478, Tk 360, Tk 349 and Tk 300 respectively.

Consumers Association of Bangladesh (CAB) President AHM Shafiquzzaman said BERC deceived ordinary consumers, who use over 80 per cent of LPG, to please businesses that created an artificial crisis. He added that a small family needing 1.5 cylinders monthly will now spend Tk 3,500 to Tk 4,000.

CAB Energy Adviser M Shamsul Alam accused import market oligarchs and distributors of holding people hostage and urged a complete energy policy overhaul.

Private employee Moinul Hasan said he last paid Tk 2,350 against October's Tk 1,837 rate, while homemaker Fahmida Akter said high electricity bills forced her back from an electric cooker to costly LPG. Meanwhile, Bangladesh Restaurant Owners Association General Secretary Imran Hossain warned the hike threatens the entire restaurant food chain.

Sources: New Age, UNB