The regulatory body refixed the price after adjusting it with the Saudi Contract Price
The Bangladesh Energy Regulatory Commission (BERC) has refixed the price of liquefied petroleum gas (LPG) of private companies at retail level with effect from July 1.
As per the new price, the private companies will have to sell 12kg LPG at Tk891 instead of the current price of Tk842.
The regulatory body refixed the price after adjusting it with the Saudi Contract Price (CP).
Also read - LPG price slashed to Tk842 per cylinder
The price of state-owned LP Gas Company will remain the same at Tk591 for 12.5kg LPG as it has no relation to the Saudi CP.
In refixing the price, the value of per kg of LPG was considered to be Tk70.24, including VAT, and such price will be applicable for refixing the price of other weighed containers.
Other quantities of LPG will be selling at higher prices, to be fixed rationally.
The auto gas price was also refixed at Tk44 per litre against the current price of Tk41.47 under the price adjustment procedure.
“This price will be applicable for the month of July until further adjustment in the Saudi CP,” said BERC Md Abdul Jalil while announcing the new price through a virtual briefing on Wednesday.
"The private companies' LPG price was refixed on the basis of Saudi CP," he told reporters.
Usually, Saudi oil company Aramco announces its CP for bulk LPG at the concluding state of every month for the next month’s transactions.
Most of Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP and market it in the country.
Also read - LPG cylinders sold for more than govt-set prices
The BERC, for the first time, fixed the retail level LPG price on April 12 after holding a public hearing to comply with a High Court order.
About 20 private companies have been operating in the market with more than 95% market share by annually importing 1.2 million tonnes of bulk LPG from mainly the Middle East while the state-owned LP Gas Company is locally producing 25,000 tonnes of LPG from locally-produced condensates at different gas fields.
Responding to a question, the BERC chairman said they have requested some administrative ministries to take action against the retail sellers who do not abide by the regulator’s price.
He said the BERC is unable to take punitive action against the violators of law due to non-framing of required regulations by the Energy Division.