Bangladesh LPG prices down by 50% amid fall in global market prices
Published : Wednesday, 1 April, 2020 at 11:39 PM Count : 577
Prices of LPG (liquefied petroleum gas) or cooking gas in the domestic market have come down by almost 50 per cent on Wednesday following a sharp fall in prices in the international market.
LPG is made up of mixing propane and buten gases. Prices of both the gases have gone down by half in one month in the global market.
It appears to be a very good news for the common people of the country as they use LPG as cooking gas.
Besides, LPG cylinders are used at food shops, hotels and restaurants, transports. However, the LPG price fall depends on import of gas from international market and supply those gas cylinders to the doorsteps of common people across the country.
On the other hand, it should be taken into ccount that how long this low prices of LPG will continue in the market.
The LPG prices in South Asian region depends on the prices fixed by Saudi Arabian oil company Aramco. Saudi Aramco announces the prices of LPG once in a month. On Tuesday, Aramco fixed the price of each tonne of propane at 230 US dollar, which was 430 dollar in the previous month. On the other hand, butane price was declared at 240 US dollar per tonne, which was 480 US dollar in the previous month.
Companies in Bangladesh generally market LPG mixing 30 per cent propane and 70 per cent butane. The drastic fall in prices have been attributed to strong disagreement between Russian and Saudia Arabia in the international fuel oil market as well as coronavirus pandemic now grips the entire world.
However, the prices of LPG had been rising in the international market since September last year. Aramco's statistics show that the price of each tonne of propane was fixed 565 US dollar, which was 350 US dollar in last September. It meant that the prices of propane incraesed by 61 per cent each tonne in five months till January 2020. At the same time, butane price had also increased by 64 per cent. The price of each tonne of butane was announced at 590 US dollar a tonne, which was 360 US dollar in September. Prices of both propane and butane had gone down somewhat in the international market after January this year. But, major fall in prices were recorded in April.
After continued increase in prices in the international market, the local companies raised the price of 12 kg of LPG cylinder by Tk 200.
Asked, Md Zakaria Jalal, general manager (Marketing) of Basundhara LPG, country's biggest LPG cylinder supplier, said the price of each cylinder of LPG was Tk 1,100 in the month of January. Each LPG cylinder's price was reduced to Tk 900 in the following two months. Now, we sell each cylinder of LPG to our dealers at Tk 860.
Zakaria Jalal said: "LPG prices have declined in the international market. It's a good news. But, it is a challenge to bring that low price of gas in the country now. Besides, it is a challenge to take the low price of LPG to the doorsteps people in the country, because dealers cannot send money to the companies through banks. The suply system has been facing major disruption.
He also observed that consumers would definitely get benefit if the LPG price fall sustained in the international market.
In 2018-19 fiscal year, total of LPG is Bangladesh was 8,25,000 tonnes.
According to the Ministry of Energy and importers, the number of consumers using LPG in Bangladesh are 3.8 million.