The Bangladesh Energy Regulatory Commission (BERC) raised the retail price of a 12kg liquefied petroleum gas (LPG) cylinder by 223 taka to 2,060 taka from 1,837 taka, with the new rate taking effect from 8pm on Monday.

In a notification issued, the commission said, “The latest price adjustment reflects rising international market prices as well as increases in commissions for importers, dealers and retailers.”

LPG prices have risen again amid supply shortages and allegations that cylinders are being sold above government-fixed rates.

The price of autogas, used in vehicles, has also been increased to 91.95 taka per litre from 84.62 taka. It was 73.09 taka per litre in September.

At a public hearing on October 29, BERC’s technical evaluation committee had proposed raising the price of a 12kg cylinder to 1,976 taka from 1,837 taka.

Consumers at the hearing questioned why they could not buy LPG at government-fixed rates and challenged the commission’s role in regulating the market, while distributors and retailers blamed importers for the supply situation.

Representatives of importers, distributors and retailers also proposed nearly doubling commissions at different stages of the supply chain during the hearing.

Last month, a 12kg cylinder, officially priced at 1,837 taka after a 252-taka increase, was reportedly sold for 2,200 to 2,300 taka in different parts of Dhaka.

During market volatility that began in the third week of September, prices of the same cylinder reportedly reached as high as 2,500 taka in some areas.

As part of the latest adjustment, BERC also increased commissions at different stages of the supply chain.

Importers’ storage and bottling charges, including transportation from operators’ plants to distributors, have been raised to 281.76 taka per 12kg cylinder from 200 taka. Dealers’ charges have increased to 85 taka from 50 taka, while retailers’ commissions have risen to 70 taka from 45 taka.

In late September, importers faced allegations of restricting supplies, citing rising international prices.

BERC introduced a monthly LPG pricing mechanism on April 12, 2021, with the import benchmark linked to prices announced by Saudi Aramco. At the time, the commission said changes to shipping costs and the commissions of importers, dealers and retailers would require fresh public hearings.

Since then, BERC has announced LPG prices every month and increased supply-chain commissions twice.