The Bangladesh Energy Regulatory Commission (BERC) on Wednesday hiked the price of liquefied petroleum gas (LPG) by Tk 1.33 per kg.
This effectively means that a 12kg container will now cost a household Tk 1,235 instead of the earlier Tk 1,219, up by Tk 16, reports UNB.
"Five to 45kg LPG containers will be rationally sold as per the new rates," said BERC acting chairman ABM Faruque.
As per announcement, the price of gas for motor vehicles has been increased to 57.55 per litre instead of the earlier Tk 56.85 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 Tk 104.02 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 5.0 per cent.
The LPG price went up to the highest Tk 1,439 (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 Tk 1,225 for a 12 kg cylinder in January this year and it witnessed continuous hikes in February, March and April.