The price of a 12kg liquefied petroleum gas (LPG) cylinder has been raised by Tk252 to Tk1,837 amid continued volatility in the local market.
The Bangladesh Energy Regulatory Commission (BERC) announced the new price on Sunday, saying the revised rate would take effect from 6pm.
The commission also raised the price of autogas, used in vehicles, to Tk84.62 per litre from Tk73.09.
BERC attributed the latest increase to higher international LPG prices, shipping costs and diesel prices used to transport LPG within the country.
The price hike comes after reports of supply shortages and sharp overcharging in the LPG market over the past two weeks.
BERC had fixed the price of a 12kg cylinder at Tk1,585 for September, but consumers reportedly had to pay Tk2,200-2,500 in the retail market amid reduced supplies.
A government intelligence report reportedly found that five LPG companies had almost stopped selling the product from September 22, anticipating higher international prices, and were holding thousands of tonnes of LPG for sale at increased prices.
The report, however, said there was no apparent supply shortage, as the country imported around 158,000 tonnes of LPG in August and 156,000 tonnes in September.
The latest development has raised fresh concerns over the effectiveness of the regulatory pricing mechanism, as similar market disruptions have occurred despite repeated measures to support importers.
In December 2025, the LPG market witnessed severe disruption, with the product reportedly selling at Tk1,800-2,000 a cylinder despite the BERC-fixed price of Tk1,341 in March that year.
The government subsequently increased the import ceiling, reduced taxes and facilitated letters of credit for importers. Freight charges were also raised to $250 per tonne from $108 following demands from importers.
Despite these measures, market prices have continued to remain volatile.
BERC began fixing LPG prices in April 2021 based on Saudi Aramco’s monthly contract price, with adjustments also taking into account shipping costs, importer margins and commissions for distributors and retailers.
The commission has since announced LPG prices every month under the pricing formula.