Despite rising prices in the global market, the Bangladesh Energy Regulatory Commission (BERC) has strategically lowered the price of liquefied petroleum gas (LPG). The revised rate for a 12-kg LPG cylinder has been set at Tk1,455.
The price of auto-gas has also been reduced slightly, from Tk66.84 per litre to Tk66.81 per litre. BERC announced that the new prices will come into effect from 6pm on Tuesday (5 November).
In a press briefing held in the BERC hall room on 5 November, BERC Chairman Jalal Ahmed unveiled the revised rates for November.
Compared to last month, the international market price per tonne has increased by approximately $10, and the average dollar exchange rate has risen from Tk119.63 to Tk120.21. These developments suggested a potential price hike domestically.
However, BERC managed to ease the burden on consumers by adjusting the shipping costs, resulting in some relief. For the first 10 months of this year, BERC averaged out the premium costs, setting it at $108 per tonne.
Prior to 12 April 2021, LPG prices were unregulated and subject to individual company decisions. Following BERC’s 12 April announcement, it was established that this imported fuel's base price would be linked to the rates issued by Saudi state company Aramco, with an initial shipping cost set at $ 95. After two adjustments by LPG importers, the shipping cost was raised to $123, but the current commission has now reduced it back to $108.
As a result, the domestic price has decreased despite rising international market rates.
According to BERC's 2021 announcement, fluctuations in Saudi prices would affect the base price, though other commissions would remain unchanged.
Since then, BERC has announced LPG rates on a monthly basis, although there have been widespread complaints regarding the availability of LPG at BERC-regulated prices.
