BERC for further LPG price hike, CAB opposes

A technical evaluation committee of the Bangladesh Energy Regulatory Commission (BERC) has proposed raising the maximum retail price of a 12kg private liquefied petroleum gas (LPG) cylinder by Tk139 to Tk1,976 from the existing Tk1,837.

The committee also recommended increasing the price of autogas to Tk93.88 per litre from Tk84.62.

The proposals were presented by committee Chairman Md Didarul Alam at a public hearing on LPG prices and traders' commissions at the BIAM Foundation in Dhaka on Thursday. The proposed rates are not final, as BERC is yet to announce its decision.

The committee recommended raising distributors' commissions to Tk6.67 per kg from Tk4.17, increasing their earnings on a 12kg cylinder to Tk80 from Tk50. Retailers' commissions would rise to Tk5.83 per kg from Tk3.75, taking their earnings on a 12kg cylinder to Tk70 from Tk45.

It also proposed increasing storage and bottling charges for private LPG operators to Tk23.48 per kg from Tk16.74, citing rising operational, financing and import costs.

Explaining the cost pressures, Didarul said changes in international sourcing patterns had increased transportation expenses for LPG importers.

Around 85 per cent of Bangladesh's LPG imports now come from the United States, according to the technical committee's report. The shift from traditional suppliers in the Middle East and Southeast Asia to US sources has lengthened shipping routes and raised freight costs, particularly as importers have increasingly relied on spot purchases.

Bangladesh consumes around 1.8 million tonnes of LPG annually, with private operators accounting for nearly 99 per cent of the supply, according to BERC estimates.

Meanwhile, the Consumers Association of Bangladesh (CAB) has urged the authorities to ensure that LPG is sold at officially fixed prices without additional charges, warning that further increases would intensify financial pressure on low- and middle-income households. 

The consumer rights organisation has also called for investigations into allegations of artificial shortages, concealed stocks and overcharging, demanding action against importers, distributors and retailers found responsible.

In a letter to BERC Chairman on October 26, CAB President AHM Shafiquzzaman said any further price increase without ensuring adequate supplies at regulated rates would place an additional burden on household budgets.

The letter noted that the price of a 12kg LPG cylinder was raised by Tk252 to Tk1,837 on October 4. However, media reports indicate that consumers are being forced to pay Tk500�"600 above the official price to obtain a cylinder.

CAB also warned against counting the same costs more than once in price calculations or passing the financial consequences of operational inefficiencies on to consumers.

The association has put forward seven demands ahead of the BERC hearing on proposed LPG price adjustments.
Meanwhile, the government has decided to keep the prices of all major fuel oils�"diesel, octane, petrol and kerosene�"unchanged for November. 

In a notification issued on Thursday, the Energy and Mineral Resources Division confirmed that the existing prices would remain effective from November 1, 2026.

According to the official notification, the retail prices remain at Tk 135 per litre for diesel, Tk 165 for octane, Tk 160 for petrol and Tk 155 for kerosene.

The decision follows a letter from the Bangladesh Petroleum Corporation (BPC), dated October 26, 2026, regarding the adjustment of fuel oil prices for the upcoming month.

The notification, signed by Md. Enamul Haque, senior assistant secretary of the Operation-1 Branch, said the prices were initially fixed through a gazette notification issued on September 20, 2026. With the approval of the competent authority, the government has decided to maintain the existing rates for November.

The notification has been forwarded to the chairman of the BPC for necessary action.