DHAKA, Apr 02 (V7N) — In a major blow to household budgets, the Bangladesh Energy Regulatory Commission (BERC) has announced a massive hike in the price of Liquefied Petroleum Gas (LPG). The price of a 12kg bottled LPG cylinder has been increased by Tk 378, bringing the retail price to Tk 1,728, up from the previous month’s rate. The new pricing is effective from Thursday evening (April 2).

The decision was formalized during a press conference at the BERC office, where Chairman Jalal Ahmed explained that the domestic adjustment was mandatory due to a sharp rise in the global market.

Global Market Drivers

The price hike is primarily linked to the Saudi Contract Price (CP), which serves as the international benchmark for LPG imports in Bangladesh.

  • Propane: Currently trading at $750 per ton.

  • Butane: Currently trading at $800 per ton.

  • Regional Impact: While the BERC Chairman confirmed that Bangladesh has not yet faced a physical shortage in imports, the increased procurement costs necessitated the April price adjustment to ensure the sustainability of private operators.

Market Enforcement and Challenges

Anticipating potential volatility, BERC is reportedly in high-level discussions with the Ministry of Power, Energy, and Mineral Resources to ensure that the gas is actually sold at the government-fixed rate.

  • Monitoring: Mobile courts and local administration have been directed to monitor distributors, as many retailers often charge significantly higher than the BERC-fixed price during periods of global uncertainty.

  • Autocontrol: The price of Autogas (LPG used in vehicles) has also been adjusted upward in line with the new base rates, further increasing transportation costs for commuters.

Economic Context

This record-breaking hike comes at a difficult time for consumers, who are already grappling with a 29% increase in CNG prices and a persistent fuel crisis at petrol pumps. Energy experts warn that the combined surge in LPG and transportation fuel will likely trigger a fresh wave of inflation across essential commodities and food items in the coming weeks.

With the international energy crisis showing no signs of abating, BERC officials hinted that prices would continue to be "synchronized" monthly with global trends, offering little hope for immediate relief to the general public.

END/SMA/AJ