VAT adjustment prompts LPG price hike

The Bangladesh Energy Regulatory Commission (BERC) announced on Tuesday that it has increased the price of liquefied petroleum gas by 37 poisha per kilogram due to adjustments in value-added tax (VAT).

Earlier, the BERC had announced that LPG prices would remain unchanged at the beginning of January.

However, following changes in the VAT rate, the price of privately supplied LPG has been increased from Tk121.19 per kg to Tk121.56 per kg.

As a result, the price of the widely used 12kg LPG cylinder has been raised from Tk1,455 to Tk1,459, reflecting a Tk4 increase per cylinder.

Previously, LPG prices remained unchanged during December and January.

On January 2, the BERC announced that LPG prices would stay the same, while reducing the price of autogas, including VAT, by 3 poisha to Tk66.78 per litre.

However, this time, the price has been increased by Tk1, setting it at Tk67.28 per litre.

According to a press release from BERC, VAT and supplementary duty adjustments under the Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2025, and related notifications necessitated the adjustment of LPG prices for January for both public and private suppliers.

The price increase applies not only to 12kg cylinders but also to cylinders of 5kg, 12.5kg, and up to 45kg.

Additionally, due to the VAT adjustments, the price of government-supplied LPG has been set at Tk12.5 per kg, and autogas prices have also increased.

LPG and autogas prices were raised in January, February, March, July, August, September, and October in 2024.

However, prices decreased in April, May, June, and November.