LPG Firms Face Losses as Cylinder Prices Fall Below Cost

The Bangladesh Energy Regulatory Commission (BERC) has reduced the price of a 12kg LPG cylinder by Tk 28, setting the new retail price at Tk 1,450 for March. Per kg LPG now costs Tk 120.81, down from Tk 123.16. Prices for other cylinder sizes, ranging from 5.5kg to 45kg, have been adjusted accordingly.

The Bangladesh Energy Regulatory Commission (BERC) has increased the price of a 12-kg LPG cylinder to Tk 1,459 for January, up by Tk 4 from the previous price of Tk 1,455. This price hike follows the implementation of new value-added tax (VAT) and tax measures.

Bangladesh's LPG industry has struggled with unsustainable pricing, with companies selling gas cylinders at a loss to capture market share. The cost of production is around Tk3,000 per cylinder, but companies like Omera and Bashundhara sell them for Tk800-900, leading to significant financial losses. 

Omera LPG launched the "LPG Solution" app, a home delivery platform for LPG cylinders, during an event marking International Chef's Day 2024 in Dhaka. The app allows customers to conveniently order LPG cylinders with home delivery and support services like kitchen setup and safety assistance. It is available on the Google Play Store and App Store. The launch event featured top chefs and Omera's senior management.

A public dispute among LPG traders in Bangladesh erupted after Azm J. Chowdhury, chairman of East Coast Group, alleged illegal LPG imports from Iran. He filed complaints with authorities, but customs and port officials found no evidence to support his claims. In retaliation, other traders accused Chowdhury of attempting to monopolize the market through his company, Omara Petroleum Limited, which dominates LPG imports.