BERC Cuts 12kg LPG Cylinder Price by Tk 39, Auto Gas by Tk 1.84 for July

The Bangladesh Energy Regulatory Commission (BERC) has announced a reduction in the price of Liquefied Petroleum Gas (LPG) and auto gas at the consumer level, effective from 6:00 PM on 2 July 2025. The price of a 12kg LPG cylinder has been slashed by Tk 39, bringing it down to Tk 1,364 from Tk 1,403, while auto gas has been reduced by Tk 1.84 per litre to Tk 62.46, including VAT.

BERC Chairman Jalal Ahmed, addressing a press conference at the commission’s office in Kawran Bazar, stated that the price adjustment for July aligns with the Saudi Aramco Contract Price (CP) for propane and butane, the primary components of LPG. For July, propane is priced at $575 per metric ton and butane at $545 per metric ton, with a 35:65 propane-to-butane ratio, resulting in an average CP of $555.50 per metric ton.

This marks the second consecutive month of price reductions, following a Tk 28 cut for a 12kg LPG cylinder and a Tk 1.27 per litre reduction for auto gas on 2 June 2025, setting the prices at Tk 1,403 and Tk 64.30, respectively. The new rates apply to private LPG operators, while the price of state-owned LPG, supplied by LP Gas Company, remains unchanged at Tk 825 for a 12.5kg cylinder.

Throughout 2024, LPG and auto gas prices fluctuated, with seven increases (January, February, March, July, August, September, and October) and four reductions (April, May, June, and November). The price remained stable in December 2023. In 2025, prices have continued to decline, with reductions of Tk 19 in May, Tk 28 in June, and Tk 39 in July for a 12kg LPG cylinder. Auto gas prices followed a similar trend, dropping by Tk 0.83 in May, Tk 1.27 in June, and Tk 1.84 in July per litre.

The highest price recorded for a 12kg LPG cylinder was Tk 1,498 in February 2023, while the lowest was Tk 999 in July 2023. The current reduction reflects a decline in global propane and butane prices, influenced by Saudi Aramco’s CP, alongside adjustments for foreign exchange rates and value-added tax (VAT).

The price cut is expected to ease the financial burden on households and vehicle owners, particularly amidst rising inflation, which hit a 12-year high of 11.66% in July 2024 due to food price surges. LPG remains a critical alternative to natural gas for cooking, with annual consumption reaching 1.48 million tons, 84% of which is used by households. Private operators, dominating 99% of the market, import 98% of the country’s LPG demand from the Middle East.

Consumers have welcomed the reduction, though some express concerns over the reliability of piped gas supply, which has driven reliance on LPG. Energy expert M Shamsul Alam, Senior Vice-President of the Consumers Association of Bangladesh, has previously criticised policies that prioritise LPG market expansion over ensuring stable gas supply, arguing they burden consumers amid rising costs of essentials.

BERC has been setting LPG prices monthly since April 2021, based on Saudi Aramco’s CP and local market factors. The commission also adjusted prices for other LPG cylinder sizes proportionally, including 5.5kg to 45kg, and reticulated LPG systems, which dropped to Tk 251.50 per cubic metre in June.

As Bangladesh grapples with energy demands and economic pressures, the latest price reduction offers temporary relief. However, stakeholders urge a streamlined regulatory framework and reduced intermediary fees to ensure long-term affordability of LPG, a vital energy source for millions.