LPG Prices Soar: Bangladesh Energy Regulatory Commission Announces Steep Hike

The Bangladesh Energy Regulatory Commission (BERC) has announced a significant increase in the price of Liquefied Petroleum Gas (LPG), citing volatile international market conditions and a crisis in the Middle East. As of 6 pm on April 19, a 12-kilogram LPG cylinder will be sold at Tk 1,940, marking a substantial hike in the fuel price.

The decision comes amid a backdrop of global market fluctuations, with the conflict in the Middle East and the suspension of LPG shipping in the region contributing to increased fuel costs. The BERC has re-determined the shipping fare and trader's premium charge for LPG import at US$250 per tonne for the interim period to maintain normal LPG supply in the country.

The price adjustment is based on the Saudi Contract Price (Saudi CP), which stands at $750 and $800 per tonne of Propane and Butane, respectively. Considering the Propane and Butane ratio of 35:65, the average Saudi CP per tonne is $782.50. This has led to a revision in the prices of all 13 sizes of LPG-filled cylinders, effective from April 2026.

The new prices for LPG cylinders are as follows: 12.5 kg at Tk 2,021, 15 kg at Tk 2,425, 16 kg at Tk 2,587, 18 kg at Tk 2,910, 20 kg at Tk 3,233, 22 kg at Tk 3,557, 25 kg at Tk 4,042, 30 kg at Tk 4,850, 33 kg at Tk 5,335, 35 kg at Tk 5,658, and 45 kg at Tk 7,275. Additionally, the auto gas price has been re-fixed at Tk 89.50 per liter, while the price per kilogram of LPG at the reticulated stage is Tk 157.91 at the retailer level, inclusive of VAT.

The BERC's decision is likely to have a significant impact on households and industries that rely on LPG for cooking and other purposes. The price hike may lead to increased costs for consumers, potentially affecting their purchasing power and overall economy. The government may need to consider measures to mitigate the effects of the price increase, such as providing subsidies or support to low-income households.

In recent years, Bangladesh has experienced a significant growth in LPG demand, driven by increasing urbanization and a shift away from traditional fuels. The government has encouraged the use of LPG as a cleaner and more efficient alternative to other fuels. However, the volatile international market and geopolitical tensions have made it challenging to maintain stable prices.

The current price hike is not an isolated incident, as the global energy market has been experiencing fluctuations in recent months. The conflict in the Middle East, the suspension of LPG shipping, and increased insurance and security costs have all contributed to the price increase. The BERC's decision to adjust the LPG price is a response to these global market trends and aims to ensure a stable supply of the fuel in the country.

In conclusion, the recent price hike of LPG in Bangladesh is a result of complex global market dynamics and geopolitical tensions. While the decision may have significant implications for consumers and the economy, it is essential to consider the broader context and the government's efforts to maintain a stable energy supply.