Bangladesh Energy Regulatory Commission, for the first time, fixed the retail prices of liquefied petroleum gas yesterday disappointing consumers.

According to the new rate, the price of gas in a 12.5kg LPG cylinder sold by the state-owned Liquid Petroleum Gas Ltd (LPGL) is Tk 591. The price for gas in a 12kg LPG cylinder of private companies is Tk 975.

The new rate came into effect yesterday, BERC Chairman Abdul Jalil said at a virtual press conference.

The price of gas in a 12.5kg LPG cylinder sold by the state-owned company was Tk 600.

This company could meet only 2 percent of the 12 lakh tonnes of LPG consumed in Bangladesh a year.

Currently, gas of a 12kg LPG cylinder is being sold in retail between Tk 980 and Tk 1,000, depending on the supplying companies. The prices are Tk 100 up from last December.

In December, gas in a 12kg LPG cylinder of Bashundhara was sold at Tk 950, Beximco at Tk 920, Jamuna Tk 940, Total Tk 950 and Petromax Tk 930.

Addressing the virtual press conference, the BERC chairman said they have set the prices based on the rate set by Saudi Aramco, a Saudi Arabian oil company, in March, and the recommendation made by the stakeholders in a public hearing on January 14.

With the announcement of the new price, the decision to fix or re-fix the retail price of LPG has gone to a single regulatory authority for the first time in the country.

Before this, state-owned and private companies used to fix their prices separately.

"We welcome the legal process that has initiated pricing. And it is the outcome of our efforts. That's why we're a little relieved," Prof Shamsul Alam, energy adviser of Consumers Association of Bangladesh (CAB).

Prof Alam, however, said the decision did not protect consumer interests. "The issues that were given importance in the public hearing were not reflected here. Instead of protecting the consumers' interests, there are examples of protecting the interests of traders."

At the public hearing on January 14, Tk 840 was mentioned as a reasonable price of LPG in a 12kg cylinder and the BERC's technical committee recommended the price to be fixed at Tk 866, Prof Alam said.

But the BERC has now set the price on the basis of the international market rate of March. If the price was fixed in January as per the recommendation of the public hearing, the price of LPG would have been Tk 866, he said. "So it proves that the BERC strategically gave traders this advantage."

"This shows that BERC has failed to protect the interests of consumers. On the other hand, it could not ensure neutrality in determining the LPG price," Prof Alam claimed.

Although the price of LPG fixed by BERC  is lower than the current price, it is still beyond the purchasing capacity of general consumers, said Al Amin Khan, of Ruhily village in Jamalpur's Melandah upazila.

Al Amin, a schoolteacher of Melandah, also urged the government to revise the price, considering the purchase capacity of people.

Meanwhile, Engineer Jakaria Jalal, head of sales at Bashundhara LP Gas Ltd, said, "We have no option but to comply with the decision as it is a decision of the state. But this price is not realistic and sustainable. We will write to the BERC to reconsider the pricing."

Before setting the price of LPG by BERC yesterday, Bangladesh Petroleum Corporation had been fixing the price of LPG produced by state-owned company, while the private companies fixed their prices on their own.

Speaking at yesterday's press conference, the BERC chairman said they would revise the price every month based on the price of international market.

According to the BERC Act, 2000, electricity tariffs and prices of downstream petroleum products should be fixed by the energy regulator through public hearings.

On November 29 last year, the High Court issued a contempt of court rule against the BERC chairman for not complying with its directive over fixing the price of LPG.

The HC bench issued the rule during hearing a petition filed by CAB.

On December 15, the BERC chairman unconditionally apologized to the HC for not complying with its directive.