Bangladesh Energy Regulatory Commission (BERC) on Thursday announced a sharp reduction in the retail price of liquefied petroleum gas (LPG), lowering the price of the widely used 12kg cylinder by Tk357.

Under the revised pricing, a 12kg LPG cylinder will now cost Tk1,528, down from the previous rate. The new prices came into effect from 6:00 PM on Thursday.

BERC reduced the consumer price of LPG by Tk29.76 per kg, bringing the new rate to Tk127.30 per kg from Tk157.06. Prices of other cylinder sizes will also be adjusted in line with the revised per-kilogram rate.

The regulator said the latest price adjustment reflects the decline in international LPG prices following the easing of tensions in the Middle East.

The price of the 12.5kg LPG cylinder supplied by the state-owned company has, however, remained unchanged at Tk825.

Meanwhile, the price of LPG used as auto gas has been reduced to Tk70.40 per litre from Tk86.93 per litre.

BERC has been fixing LPG prices on a monthly basis since April 2021, using the Saudi Contract Price (Saudi CP) announced by Saudi Aramco as the benchmark. The commission also takes into account the average exchange rate based on import invoices submitted by LPG importers while determining domestic prices.

Although the regulator sets monthly retail prices, consumers have frequently alleged that many retailers sell LPG cylinders at rates higher than the official price.