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The Financial Express

Energy regulator cuts LPG prices by 7pc

| Updated: April 30, 2021 16:26:17


Energy regulator cuts LPG prices by 7pc

The Bangladesh Energy Regulatory Commission (BERC) reduced retail prices of LPG by around 7.0 per cent for trading in domestic market in May.

The commission adjusted the LPG prices considering the Saudi Aramco contract price (CP) of April 2021, fluctuations of foreign currency, and change in the value added tax (VAT) amount.

The retail price of a 12-kg LPG cylinder, to be provided by private operators, has been adjusted lower to Tk 906 for May compared to Tk 975 for April, BERC Chairman Md Abdul Jalil announced in a media briefing on Thursday.

The retail price of a 12.5-kg LPG cylinder, to be provided by the state-run LP Gas Ltd, will remain unchanged at Tk 591 for May.

The LPG price of LP Gas Ltd has been kept unchanged, as the fuel being produced by the state-owned company does not link with the price movement of Saudi Aramco CP price, he also said.

Retail price of auto gas, the LPG used in vehicles, has been adjusted lower to Tk 44.70 per litre for May instead of Tk 47.92 per litre for April.

The new prices will be effective from May 1, added the BERC chairman.

The Saudi Aramco CP price for propane was US$560 per tonne and $530 per tonne for butane in April.

The BERC has considered the propane and butane mixture at the ratio of 35:65 to get the average price at $540 per tonne.

The VAT of per kg LPG has been reduced by Tk 0.38 in May due to fall in the Saudi Aramco CP price.

The commission on Thursday adjusted the retail level LPG price by private sector at Tk 81.30 per kg including VAT.

Private sector will be able to sell LPG to consumers through different sizes of cylinders, like - 5.5 kg, 12.5 kg, 15 kg, 16 kg, 18 kg, 20 kg, 22 kg, 25 kg, 30 kg, 35 kg, and 45 kg.

Price for LPG to be supplied through reticulated system or centralized storage system will be Tk 73.20 per kg including VAT.

To implement the BERC decision on new LPG prices, the commission chairman sought cooperation from all concerned including the relevant ministries, departments and administrative authorities.

Mr Jalil also focused on consciousness from the consumers' side to implement the BERC order.

Responding to a query, the BERC chairman admitted that the retail LPG prices for April was not fully implemented.

"It has been implemented partially," he added.

Bangladesh imports around 95 per cent of its total LPG requirement from global sources, while LP Gas Ltd produces around 20,000 tonnes of LPG after refining from crude oil and condensate.

The country usually imports pressurised LPG in coaster-type vessels with a capacity of about 1,800 tonnes, delivered to Mongla Port from trading sources, such as Singapore or the nearest deep sea-ports. Its main LPG suppliers include Siam Gas, BB Energy, Vitol Asia and Petredec.

More than 25 LPG companies, of varying sizes and investment, are now operating in the Bangladeshi market.

LPG consumption in the country has risen to around 1.5 million tonnes per year currently from around 1.0 million tonnes in 2018.

 

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