A technical evaluation committee of the Bangladesh Energy Regulatory Commission (BERC) has proposed raising the maximum retail price of a 12-kilogram liquefied petroleum gas (LPG) cylinder in the private sector by Tk 139, from Tk 1,837 to Tk 1,976.

The proposed increase has been attributed to rising operating, financing and import costs.

The committee has also recommended increasing the price of autogas from Tk 84.62 to Tk 93.88 per litre.

Committee Chairman Md. Didarul Alam presented the proposals at a public hearing on LPG price adjustments held at the BIAM Foundation in Dhaka on Thursday, October 29.

Alongside the proposed retail price increase, the committee recommended higher charges for LPG storage and bottling, as well as increased commissions for distributors and retailers.

The proposed storage and bottling charge for private LPG operators would rise from Tk 16.74 to Tk 23.48 per kilogram.

Under the proposal, distributors’ commission would increase from Tk 4.17 to Tk 6.67 per kilogram. As a result, their commission on each 12kg cylinder would rise from Tk 50 to Tk 80.

Retailers’ commission would also increase from Tk 3.75 to Tk 5.83 per kilogram, raising their earnings per 12kg cylinder from Tk 45 to Tk 70.

Explaining the reasons behind the higher costs, Didarul Alam said changes in international LPG sourcing had increased importers’ transportation expenses.

“With imports increasingly shifting to the United States from traditional suppliers in the Middle East and Southeast Asia, shipping routes have become longer and transportation costs have risen,” he said.

He added that operators’ growing reliance on purchasing LPG from the spot market had further increased expenses.

According to data presented by BERC’s technical committee, around 85 per cent of Bangladesh’s imported LPG currently comes from the United States.

BERC estimates that Bangladesh consumes approximately 1.8 million tonnes of LPG annually. Private operators account for nearly 99 per cent of the country’s total LPG supply.

The proposed price adjustment follows a review of various costs across the LPG supply chain, including imports, storage, bottling and distribution.

The recommendations were presented at the public hearing as part of the regulatory process for determining LPG prices. The proposed rates will not take effect unless and until BERC announces its final decision.