Bangladesh Energy Regulatory Commission (BERC) has significantly reduced the retail price of privately marketed liquefied petroleum gas (LPG), lowering the price of a 12kg cylinder by Tk 357 to Tk 1,528 for July following a decline in international LPG prices.
The new prices were announced on Wednesday and came into effect at 6:00pm.
Under the revised pricing, the retail rate has been fixed at Tk127.30 per kilogram, down from Tk157.06 per kilogram in June, reflecting a decrease of Tk29.76 per kilogram. Prices of LPG cylinders of all capacities will be adjusted in line with the new per-kilogram rate. The latest revision follows a Tk55 reduction in June, marking the second consecutive monthly price cut.
According to BERC, the price reduction reflects a fall in global LPG prices after geopolitical tensions in the Middle East eased. International prices declined following the signing of a memorandum of understanding (MoU) between the United States and Iran, which contributed to the reopening of the Strait of Hormuz and improved market stability.
Meanwhile, the price of the state-owned LP Gas Limited's 12.5kg LPG cylinder remains unchanged at Tk825.
BERC has also lowered the retail price of autogas used in vehicles to Tk70.40 per litre from Tk86.93 per litre.
The commission has been determining LPG prices on a monthly basis since April 2021. The pricing mechanism is based on the Saudi Contract Price (CP) announced by Saudi Aramco for propane and butane-the two primary components of LPG-along with the average exchange rate calculated from import invoices submitted by LPG operators.
