The Bangladesh Energy Regulatory Commission (BERC) on Wednesday hiked the price of liquefied petroleum gas (LPG) by Tk1.33 per kg.
A 12-kg cylinder of LPG will cost a consumer Tk1,235 from 1pm on Wednesday, up from Tk1,219 in August – a Tk16 increase. “Five to 45kg LPG containers will be rationally sold as per the new rates,” said BERC acting chairman ABM Faruque. As per the announcement, the price of gas for motor vehicles has been increased to Tk57.55 per litre instead of the earlier Tk56.85 per litre. Faruque said though the LPG price has substantially come down in the global market, consumers are not getting full advantage of the downward trend due to the high dollar price in the local market. Operators have to import LPG from the international market. He informed that the dollar exchange rate was considered Tk104.02 on the basis of the weighted average rate of 16 importing companies’ LC settlements.
Referring to the Commission’s discussion with Bangladesh Bank, he said the central bank’s dollar exchange rate is not applicable to private importers. “BB informed the BERC that only two government entities enjoy the benefits of the central bank’s set dollar rate”, he added.
As a result, local banks are not abiding by the dollar rate fixed by Bangladesh Bank. Rather, they set the dollar price depending on the demand and supply and their relation with clients.
Banks are calculating dollar rates much higher than Bangladesh Bank’s rate.
The price of LPG, marketed by state-owned LP Gas Company, will remain as usual as it is locally produced with a market share of less than 5%. The LPG price went up to the highest Tk1,439 (a 12kg cylinder) in the local market, following the start of the Russia-Ukraine war in February this year. The LPG price was the lowest at Tk1,225 for a 12kg cylinder in January this year and it witnessed continuous hikes in February, March and April.
