LPG prices much higher in Bangladesh than neighbors

DHAKA: The regulated price of liquefied petroleum gas (LPG) used for cooking is significantly higher in Bangladesh than in neighbouring countries. LPG is priced at Tk 153 per kilogram in Bangladesh, compared with Tk 87 in Kolkata, India. The regulated prices in Pakistan, Sri Lanka and Nepal are also lower than in Bangladesh.

According to officials concerned, the Bangladesh Energy Regulatory Commission (BERC) sets LPG prices in Bangladesh. However, the regulated price is rarely followed in the market. For instance, the official price of a 12-kg LPG cylinder is currently Tk 1,837, while it is being sold for Tk 2,300 to Tk 2,500 in Dhaka.

Overall, people in Bangladesh are having to pay much more for cooking gas than consumers in neighbouring countries. Even the higher prices set by government agencies such as BERC and the Directorate of National Consumers’ Right Protection (DNCRP) are not being effectively enforced. The problem is not new and has persisted for years.

Around 10 million consumers in Bangladesh use LPG, with about 80 percent of it used for household cooking. Annual demand for LPG has now exceeded 1.5 million tonnes. Any increase in LPG prices puts additional pressure on low- and middle-income households. Amid high prices of electricity, fuel and essential commodities, LPG has also become increasingly expensive.

LPG prices in different countries: Private companies mainly import LPG to meet domestic demand. Following a court directive, BERC sets LPG prices every month. The commission has been fixing LPG prices since April 2021, with the stated objective of ensuring cooking gas is available to consumers at affordable prices. BERC announced the latest LPG price on Sunday, raising the price of a 12-kg cylinder by Tk 252 to Tk 1,837.

According to data from Indian state-owned oil company Indian Oil Corporation Limited (IOCL), LPG prices vary from one Indian state to another. In Kolkata, the capital of West Bengal, a 14.2-kg LPG cylinder is priced at 968 Indian rupees at retail outlets. This works out to 68.17 rupees, or around Tk 87, per kilogram in Bangladeshi currency. The price is even lower in Delhi and Mumbai.