The proposals were presented by the committee’s Chairman Md Didarul Alam at a public hearing on LPG price adjustment at the BIAM Foundation in Dhaka today (29 October).

The recommendations were presented at the public hearing as part of the regulatory process for determining LPG prices. The proposed rates are not final until BERC announces its decision.

Alongside the retail price increases, the committee proposed raising storage and bottling charges and the commissions paid to distributors and retailers.

It recommended increasing storage and bottling charges for private LPG operators to Tk23.48 per kg from Tk16.74.

The proposed distributor commission would rise to Tk6.67 per kg from Tk4.17, increasing their earnings on a 12kg cylinder to Tk80 from Tk50.

Similarly, the retailer commission would increase to Tk5.83 per kg from Tk3.75, raising their earnings on a 12kg cylinder to Tk70 from Tk45.

Explaining the cost pressures, Didarul said changes in international sourcing patterns had increased transportation expenses for LPG importers.

Around 85% of Bangladesh’s LPG imports now come from the United States, according to data presented by the BERC technical committee.

The shift away from traditional suppliers in the Middle East and Southeast Asia towards US sources has lengthened shipping routes and pushed up freight costs, particularly as operators have increasingly relied on spot purchases, he said.

Bangladesh’s LPG market consumes around 1.8 million tonnes annually, with private operators accounting for nearly 99% of the country’s supply, according to BERC estimates.

The proposed price adjustment follows the commission’s review of the cost components of the LPG supply chain, including import expenses, storage and bottling charges, and distribution costs.