The Bangladesh Energy Regulatory Commission (BERC) has increased the prices of liquified petroleum gas (LPG), the second time in one month. The BERC hiked the price of LPG, used for cooking, per kg by Tk12.54. Accordingly, the price of a 12 kg cylinder rose by Tk 150.56 from Tk1,240 in February to Tk1,390.56.

The new price will take effect from 6pm on Thursday, the BERC said in a virtual media call. On February 3, the regulator increased the prices by 5.26%, after two months of consecutive price reductions. The price of a 12kg cylinder was revised up by Tk62 then.

Price of auto gas has also gone up to TK 64.78 a litre from the Tk 57.51. BERC chairman Abdul Jalil said the Russia-Ukraine war has pushed up the LPG prices globally, creating a crisis in the energy market.

"We are forced to hike the local LPG prices as the Saudi contract price (CP) has risen globally -- from $775 per metric tonne to $911," he said. "Earlier local suppliers faced supply disruptions. But now the problem has been resolved." The BERC chairman, however, said the prices of the state-owned LP Gas Company's LPG will remain unchanged as it's not linked to the global market rates.

Citing industry insiders, UNB reported that the Saudi CP is normally announced at the end of every month to make it effective for the next month, and it takes at least 7-10 days for a shipment of the fuel to arrive in the country. Most Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP and market it locally.