Bangladesh lowered the retail prices of liquefied petroleum gas (LPG) provided by private operator by 6.96 per cent for June trading, in a downward adjustment of the previously hiked rates.
The price of 12kg cooking fuel has been adjusted lower to Tk 1242 for June trading from Tk 1335 of May, Bangladesh Energy Regulatory Commission (BERC) Chairman Md Abdul Jalil said while announcing the new tariffs virtually Thursday.
The commission adjusted the LPG prices considering the Saudi Aramco contract price (CP) for June 2022 as the benchmark for fixing its prices for the domestic market.
It also considered fluctuations in foreign-currency exchange rates and change in the value-added tax (VAT) amount to fix the domestic prices of the petroleum fuel.
The Saudi Aramco CP price of propane is US$750 per tonne and butane $750 per tonne for June.
The BERC has considered the propane and butane mixture at the ratio of 35:65 to get the average price at $750 per tonne.
Aramco CP price of propane and butane was US$850 per tonne and butane $860 per tonne for May trading.
The commission fixes the LPG prices for private operators within first week of every month.
"The new prices will have immediate effect from June 2, 2022," says the BERC chairman.
Private-sector marketers can sell LPG through different sizes of cylinders like 5.5kg, 12.5kg, 15kg, 16kg, 18kg, 20kg, 22kg, 25kg, 30kg, 35 kg, and 45kg to consumers at proportionately higher prices in June, says the announcement.
Price of LPG to be supplied through reticulated system, or centralized storage system, will be Tk 100.29 per kg inclusive of VAT for June trading compared to previous mark of Tk 108.20 per kg.
Retail price of auto gas-the LPG used in vehicles-was also slashed to Tk 57.91 per litre, including VAT, from Tk 62.21 per litre of May.
The price of state-owned LP Gas's LPG has been kept unchanged at Tk 591 for 12.5 kg gas.
Currently 27 LPG operators are doing business although some 58 got received licences to carry out the business.
Some 20 operators import around 1.10 million tonnes of LPG from the international market, which is around 98 per cent of the country's total requirement of this fuel, while seven are satellite operators.
There are 20 LPG terminals across the country with a combined reserve capacity of around 100,000 tonnes.
Some 35 million LPG cylinders are being used in the LPG business in the country.
Some 200 road tankers, 5,000 trucks and 21 cargoes are involved with the countrywide LPG marketing.
