Consumers are set to face further financial pressure as the price of a 12kg Liquefied Petroleum Gas (LPG) cylinder has been increased by Tk 223 to Tk 2,060, adding to their woes amid persistent overpricing in the market.
The Bangladesh Energy Regulatory Commission (BERC) issued a notification regarding this price hike on Monday evening.
The new rate will come into effect after 8:00 pm tonight.
Although the price was raised by Tk 252 to Tk 1,837 in October, the product is currently being sold for between Tk 2,200 and Tk 2,300, even within the capital itself.
The price of autogas, used mainly in motor vehicles, has also been raised significantly.
BERC fixed the consumer-level price at Tk 91.95 from Tk84.62 per litre for November.
The BERC notification said Saudi Aramco had set its November contract price at $720 per tonne for propane and $780 for butane.
Based on a 35:65 propane-butane mixture, the average Saudi Contract Price (CP) for LPG stands at $759 per tonne, up from $712.50 in October.
The increase of $46.50 per tonne in the international benchmark has added around Tk74, including VAT, to the price of a 12kg LPG cylinder, according to the BERC calculation.
Alongside the rise in international prices, the commission has revised charges for LPG storage, bottling, distribution and retail sales.
For the latest price calculation, it considered $250 per tonne for shipping costs and importers' premiums, while the exchange rate was set at Tk123.46 per US dollar.
The storage and bottling charge for private-sector LPG has been fixed at Tk23.48 per kg, including transportation costs from bottling plants to distributors' warehouses.
The BERC said LPG cannot be sold at any stage of the supply chain above the prices fixed by the commission. The directive applies to bottling companies, distributors and retailers.
Bottling companies must deliver cylinders to distributors' warehouses at their own expense and cannot impose any additional charges beyond the prescribed transportation costs.
A writ petition was filed with the High Court in 2016 over the determination of consumer-level LPG prices in Bangladesh.
Following the petition, the court issued an order on August 25, 2020.
The BERC subsequently fixed prices for government and private-sector LPG on April 12, 2021.
Since then, private-sector LPG prices have been adjusted every month in line with Saudi Aramco's announced propane and butane prices on the international market.