The price of liquefied natural gas (LPG) fell for the second time in two months thanks to lower prices on the international market.
The Bangladesh Energy Regulatory Commission (BERC) yesterday reduced the retail price of LPG from private companies by more than 7 percent to 842 Tk for every 12 kilogram (kg) bottle.
The new award will take effect from today, said BERC President Abdul Jalil, announcing the new award at a virtual press conference.
However, the commission did not change the price of LPG sold by the state-owned Liquid Petroleum Gas Ltd (LPGL). The current price of gas sold by the company in 12.5 kg cylinders is Tk 591.
The new price of LPG used in cars is 41.74 Tk per liter, down from the current price of 44.70 Tk.
The regulator first set the price of LPG in the country on April 12. He said the price would be adjusted every month based on the international market.
Local companies import propane and butane, the main ingredients for making LPG, from different countries.
Saudi Aramco publishes the price of these two components of LPG on a monthly basis. This is called the Saudi contract price or the Saudi CP. The BERC adjusted the price of LPG in the country based on the base price of this Saudi CP.
LPG prices have been falling on the world market for a few months now.
The BERC chief said they had re-fixed the new price according to the new Saudi CP rate for May.
According to Jalil, the price was adjusted taking into account the changes to three factors, namely the Saudi CP, the exchange rate of taka against the dollar and the VAT rate.
However, many consumers expressed concern about the implementation of the new price because the regulator could not enforce the decision of its previous tariffs.
“You can sell the cylinders at a lower price than the adjusted price, but not at a higher price. Letters have been sent to the secretary of commerce and the secretary of energy asking them to task the local government with playing a role in the implementation of the commission rates, ”he said.
Earlier on April 29, the BERC also reduced the retail price of fuel by about 7 percent to Tk906 for each 12 kg cylinder.