LPG Prices in Bangladesh Higher Than in Neighbouring South Asian Countries

PNN News Desk | Dhaka

Liquefied petroleum gas (LPG) prices in Bangladesh are higher than those in neighbouring South Asian countries.

Consumers in Bangladesh now have to pay Tk 2,060 for a 12-kilogram LPG cylinder. The price of an equivalent quantity of gas is lower in India, Nepal, Sri Lanka and Pakistan.

On Monday (November 2), the price of a 12kg LPG cylinder in Bangladesh was increased by Tk 223, bringing the new price to Tk 2,060.

In comparison, the price of the equivalent quantity of LPG in Pakistan is approximately Tk 1,583 in Bangladeshi currency. The corresponding prices are around Tk 1,567 in Sri Lanka, Tk 1,426 in Nepal and Tk 1,072 in Kolkata, India.

However, the standard cylinder sizes differ across these countries.

India and Nepal generally use 14.2kg cylinders, while Pakistan uses 11.8kg cylinders. In Sri Lanka, 12.5kg cylinders are common, whereas 12kg cylinders are widely used in Bangladesh.

Therefore, for comparison purposes, prices in all these countries have been calculated on the basis of 12 kilograms of LPG.

According to information from Indian government-owned company Indian Oil, the price of a 14.2kg LPG cylinder is 942 Indian rupees in Delhi and 968 rupees in Kolkata.

Based on the prevailing exchange rate, the price of 12kg of LPG in Kolkata is approximately Tk 1,072 in Bangladeshi currency.

India also provides a subsidy of 300 rupees per cylinder for low-income consumers.

An eligible customer can receive this benefit up to four times a year. However, biometric registration is required to access the subsidy.

According to information from Nepal Oil Corporation, a 14.2kg LPG cylinder in Nepal costs 2,060 Nepalese rupees.

On that basis, the price of 12kg of LPG comes to approximately Tk 1,426 in Bangladeshi currency.

According to the pricing information provided by Sri Lanka's state-owned Litro Gas, a 12.5kg cylinder costs 4,365 Sri Lankan rupees. The price of 12kg of LPG is therefore approximately Tk 1,567.

Meanwhile, according to information from Pakistan's Oil and Gas Regulatory Authority, an 11.8kg cylinder costs 3,470 Pakistani rupees.

Calculated on the basis of 12kg, the price comes to approximately Tk 1,583 in Bangladeshi currency.

However, LPG is not always available at government-fixed prices in neighbouring countries.

There are allegations that when demand increases, cylinders are sold in the market at prices higher than the officially determined rates.

A similar situation is also observed in Bangladesh.

Import and transportation costs are considered among the major reasons behind the relatively high LPG prices in Bangladesh.

In its November price determination, the Bangladesh Energy Regulatory Commission (BERC) included $250 per tonne for transportation costs and the importers' premium.

However, similarly reliable comparative information regarding these expenses in neighbouring countries was not available.