• Friday, May 27, 2022
  • Last Update : 04:24 pm

12kg LPG cylinders might get Tk300 cheaper

  • Published at 09:22 pm August 5th, 2021
Liquefied Petroleum Gas cylinders Mehedi Hasan/Dhaka Tribune

Govt mulls importing to reduce the price of LPG

Bangladesh Petroleum Corporation (BPC) is thinking of importing liquefied petroleum gas (LPG) as the demand for LPG continues to grow due to the natural gas crisis, in a bid to supply at affordable prices, it said.

According to BPC, there is a plan to build an LPG terminal at Matarbari deep sea in Cox's Bazar. As a result, the price of a 12 kg cylinder will be reduced by Tk 300.

Currently, the private sector is importing LPG from Singapore, Malaysia and the Middle East.

The LPG Operators Association of Bangladesh (LOAB) says there are currently 3.8 million LPG customers in the country and the private sector is meeting 98% of the demand.

“Consumers have a basic right to get products at a proper price. For a long time, petroleum products aren’t being charged a fair price. We appreciate the move and its aim to provide LPG at a reasonable price to the consumers,” said Dr M Shamsul Alam, Consumers Association of Bangladesh (CAB) Energy Advisor.

As a government body, while making the decision, it should be taken upon public hearing. Earlier discrepancies shouldn’t be repeated in this case. Import process and producers’ data must be made public, he added.

Earlier, the state minister for Power, Energy and Mineral Resources Nasrul Hamid said that LPG should be handed over to consumers at affordable prices. So if the wholesale supply chain remains under government command, the price can be controlled at the retail level as well.

In this regard, the Ministry of Power, Energy and Mineral Resources said that the LPG sector is controlled by private companies for which they are able to sell at arbitrary prices.

Although the Bangladesh Energy Regulatory Commission (BERC) has set the price, they are not complying. The government will be able to control the price of LPG if it is imported officially like fuel oil.

But the country's businessmen want to keep the sector in their hands and are opposing the government to take control in various ways.

According to BPC, the report says, about 11 lakh tonnes of LPG has been used in the country in the 2019-20 financial year. In a decade, LPG consumption in the country has increased by an average of 35% every year. If this continues, the demand is expected to be around 78 lakh tonnes by 2041.

Price of retail LPG up again

Some 20 private companies dominate the local LPG market with more than 95% market share.

The price of liquefied petroleum gas (LPG) supplied by private companies has been increased at the consumer level, effective from August 1.

A 12kg private LPG cylinder will cost Tk993, up by Tk102, from Tk891. This is the maximum retail price.

Energy regulator Bangladesh Energy Regulatory Commission (BERC) announced the new prices at an online press conference on Thursday.

The BERC has adjusted the price of LPG due to mounting prices in the world market. In addition, the price of LPG of the state-owned company has not changed as the cost has not changed at the production stage.

The official price of a 12 kg LPG cylinder has remained at Tk591.

BERC Chairman Md Abdul Jalil said that according to paragraph “Ka” of the BERC Act, the Saudi CP of propane and butane declared by Saudi Aramco for the month of July is 620 per ton and the average ratio of propane and butane is 620 per ton of propane and butane. This price has been determined considering this.

On April 12, the commission announced the pricing of LPG for the first time. The price of LPG in the country is usually determined according to the Saudi CP (Contract Price).

Most Bangladeshi private companies import their bulk LPG from the Middle East based on Saudi CP and market it locally.

When the price of Saudi CP changes at the end of each month, the commission issues a new order to change the price of LPG.

The BERC chairman said that even if the price was rearranged, other orders issued by the commission on LPG on April 12 would remain unchanged.

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