- September 15, 2021
- Posted by: PetromaxLPG
- Category: Gas Cylinder Price
The current gas situation in Bangladesh is a mixed bag. With the pipelined natural gas supply shortage situation, LPG has emerged as a great alternative. LPG as a solution has seen mass adoption in the last few years. However, unstable gas cylinder price in Bangladesh was seeming like a big hindrance to this revolution. That problem has started to be mitigated as the Energy Commission has initiated a price regulation system in the market.
We can consider these pieces of information as a little sneak peek into the overall LPG deal in Bangladesh. However, there is much more to know about LPG, its uses, industry, prices, and everything.
In this article, we would like to cover all the major things that you should know about LPG and LP gas prices in Bangladesh. We will also discuss how to choose a good LPG brand and things to follow while buying an LPG cylinder.
So, without any further delay, let’s start by digging a bit about LPG itself.
What Is LPG?
You probably have heard the abbreviation LPG thousands of times in your life. But what is this LPG? LPG is a shortened form of Liquefied Petroleum Gas. It is a mixture of two hydrocarbon gases. Those are propane and butane.
Propane and butane gas can be found in natural gas as well. The liquified mixture of these two constitutes LPG. These are also called ‘Natural Gas Liquids’. A 30:70 mixture ratio of propane and butane makes LPG.
This gas has a boiling point below room temperature. So, if it is kept in an open place it will evaporate very easily. That is why LPG is usually stored in airtight steel vessels or cylinders to keep it safe from evaporating.
LPG is flammable and has a variety of uses. It can be used to cook, generate energy and heat as well as refrigerate. LPG can be used as a motor fuel too. LPG used in automobile fueling is widely known as Autogas all over the world.
LP gas is used in households and industries as an ideal substitute for natural gas. As natural gas is getting depleted, the adoption of LPG is increasing across the globe. It is considered a sustainable and secure alternative.
LPG Industry in Bangladesh
The LPG industry in Bangladesh is rapidly growing due to the shortage of natural gas supply. The government has already declared LPG as the primary fuel which has increased its existing popularity.
The LPG industry in this country has existed for quite some time now. However, it is now more in demand than ever which translates to better business opportunities. So, the industry has seen a sharp rise in competition.
Now, let’s have a brief overview of the current Bangladeshi LPG industry.
The LPG industry of Bangladesh is largely import-oriented. Even though it is growing at a very high pace yet the production facility within the country is not that much. Almost 95% of the total LPG supply is imported from foreign soil.
The present demand for LPG hovers somewhere around 1 million tons. The total supply for LPG was also 1 million last year. Currently, there is no shortage in the market, rather we are facing an oversupply crisis.
Around 30 big and small companies are involved in the LPG business in Bangladesh. This number is expected to increase in upcoming years as the government is encouraging new entrants in the LPG industry.
Historically, the LPG cylinder price in Bangladesh has been highly unstable. The reasons behind it are raw material price changes, insufficient government regulation, oversupply, and unhealthy price war between LPG operators.
However, in recent months, BERC has started to put regulations on the price.
What The Future Holds!
With the declaration of LPG as primary fuel and the government encouraging new entrants, the LPG industry has a shining future. We are expecting to see more competition in the market and an increase in overall supply.
Increasing adoption of LPG in households and industries is going to raise the current LPG demand too. As both the demand and supply of LPG increase, the overall valuation of the industry is expected to skyrocket.
We can expect more investment and new entrants in the upcoming days. Many established companies are also eyeing to open up their LPG units as there are great market capitalization opportunities in this industry.
Undoubtedly, LPG is shaping up to be the fuel of the future. So, the industry around it will get stronger and more mature. This will facilitate both consumers and entrepreneurs.
Instability of LP Gas Cylinder Price In Bangladesh
Due to the increasing international prices of gases and lack of regulations, the LPG gas cylinder price in Bangladesh has seen instability over the years. The price was getting out of the reach of the general mass at one point.
LPG cylinders come in a variety of different sizes. However, the most common one is the 12 kg LPG cylinder. For a small household, a 12 kg cylinder is supposed to last around a month.
LPG price for a 12 kg cylinder is sitting around BDT 1100. Depending on international price, the price of locally bottled cylinders vary. CAB says it’s out of reach of customers.
However, that is not true. Even though the price is unstable, it is still within the grasp of the consumers. If the price needs to be dropped below the current available market price, the government must introduce subsidy policies.
The LPG market had seen many price hikes over the last decade. As an import-oriented industry, these price hikes were not that surprising. The prices went up every time there was a slight bump in the price of the foreign market.
Controlling these price hikes and fully stabilizing the LPG market is tough due to its characteristics. However, some regulations imposed on the consumer price level are expected to keep the LPG price within reach of the people.
Regulation of LPG Cylinder Price In Bangladesh
To bring down the price of LPG and ensure consumer access, Bangladesh Energy Regulatory Commission started regulating the price of LPG. In April 2021, BERC announced the regulated LPG prices for the first time.
The price regulation was set according to the international price posted by the Saudi CP. An ideal mixture ratio of 35% propane and 65% butane was considered while doing the calculations of LPG prices.
From April 2021, BERC regulates the prices every month according to the international price data of the previous month. After the initial set price, BERC went on to slash the price by 7% each month for the next couple of months.
However, in July and August 2021, the LP gas price in Bangladesh has been raised by 6% and 11% by BERC. Although the price has increased a bit, LPG prices remained in the grasp of the general people.
To minimize the instability in prices, the regulations helped quite a bit. Yet the industry is prone to price hikes if the international prices go up.
Current Gas Cylinder Price In Bangladesh
Since BERC price regulation, the unhealthy price war among the LPG operators and the unstable price situation is expected to get better. However, as the international price goes up, the government needs to subsidize the LPG sector to keep the prices low.
The recent increase in consecutive two months is giving a sign that the prices may go higher in upcoming days.
The LPG industry in Bangladesh has more than 30 operational companies. These distributes LPG cylinders in different sizes. Apart from bottling and distributing cylinders, they also supply industrial gas and Autogas in bulk through road tankers.
If we talk about cylindered LPG gas, the most common sizes will be 12 kg and 35 kg cylinders. 12 kg cylinders are made targeting household use whereas 35 kg cylinders are made keeping commercial use in mind.
So, to give an organized overview of the gas cylinder price in Bangladesh, we have divided the cylinder sizes into two categories. One category focusing on household consumption, the other one focusing on commercial consumption.
LP gas cylinder price in Bangladesh, starting from 5.5 kg up to 25 kg can be labeled as for household consumption. There are nine different weight categories from 5.5 kg to 25 kg.
If we take the small cylinders first, we will be looking at 5.5 kg, 12 kg, and 12.5 kg LPG cylinders. 15 kg, 16 kg, and 18 kg LPG cylinders can be categorized as LPG choices for mid-sized households.
Apart from these SKUs, many companies manufacture and bottle 20 kg, 22 kg, and 25 kg LPG cylinders focusing on large households.
For Commercial Use
LPG cylinders weighing from 30 kg to 45 kg are designated purely for commercial uses. There are four different sizes in this weight segment. They are 30 kg, 33 kg, 35 kg, and 45 kg.
Among the SKUs, 30 kg and 33 kg variants are slightly uncommon sizes. Many companies don’t have these size variants in their product lineup.
However, 35 kg LPG cylinders are the most commonly used commercial level LPG cylinders out of the four. The largest size variant of mass-produced commercial level LPG cylinder is 45 kg.
Industrial LPG and Autogas
The use of LPG is not restricted to households and commercial arenas. Many industries are switching to LPG as their choice of energy source as well. To cater to those industries, LPG brands are also providing industrial solutions.
Another area with rapidly growing LPG consumption is automobile fuel. For automobiles, LPG has been rebranded as Autogas. The increasing demand for Autogas is showing great promises for the future of the LPG industry.
Let’s take a deeper dive into these two LPG solutions.
The shift in terms of energy uses at the industrial level has allowed many companies to sell LPG in bulk to the industries. These bulk LPG solutions cater to the industries’ high capacity need for LPG as fuel.
LPG brands sell bulk industrial solutions in the form of cylinder bulk storage as well as connected cylinder banks. This high-volume storage and reticulation system has revolutionized LPG use in industries by making it more accessible.
Autogas is yet not a popular concept in this country. However, it has a growing demand. As an alternative to diesel, petroleum, and CNG; Autogas can emerge as an effective and efficient option due to its higher octane rating.
With this idea, many big names in the LPG industry have already started investing in Autogas. More and more filling stations are getting equipped with Autogas. It is a great initiative for a better and more sustainable future.
What To Look For In An LPG Brand
If you want to get an LPG and only search for the cheapest gas cylinder price in Bangladesh, you are doing it wrong. There are many attributes to LPG brands other than the price that may help you to choose among them.
You can’t differentiate among 30 brands just considering the LP gas cylinder price in Bangladesh. Moreover, after the intervention from BERC, all the existing brands are forced to sell their LPG at the same price point.
So, you need to know what you should be looking for in an LPG brand, what makes the best product for you. You must assess a brand properly before going on and purchasing LPG from them. The brand must be reliable.
To help you with that, we have taken the hassle of putting together five different characteristics that you must seek in a good LPG brand. If your desired brand fulfills all the attributes, you are good to go.
Reliability of Product
The reliability of the LPG that you are buying should be among your top priority. Without having a perfect LPG consistency, you may run into inefficient outcomes. That will be a very hard job to deal with.
So, making sure that the reliability of the LPG that you are buying is key here. The LPG should have the perfect mixture of propane and butane gas, ideally 30:70 in ratio. That will give you the optimum heat that you need.
Moreover, the LPG manufacturing facility should be strictly quality controlled. It must have the technology to monitor LPG quality as well as cylinder quality. It should hold a certification of quality control from organizations such as ISO.
The cylinders must be in good shape. It should have manufacturing as well as retest date printed on them. The company should regularly re-examine cylinders after the retest date to ensure the safety of the cylinders.
So, whenever you are choosing an LPG brand, make sure it checks the reliability box. Without ensuring the reliability of the product, never pick a brand. It can prove to be very inefficient and risky.
High-Quality Raw Materials
We always recommend that you run background research about the companies’ use of raw materials before deciding on a brand. Always settle for high-quality materials over the price of the LPG. It is a matter of your safety.
By saying high-quality materials, we mainly focus on two things. The quality of imported propane & butane gases and the materials from which the cylinder and other accessories are made. If both tick, you may proceed with the brand.
In most cases, gases imported from a trusted gas manufacturer are perfectly fine. However, you must look up the steel that the brand is using to make its cylinders. We always prefer cylinders made using steel imported from Japan.
It is always safe to ensure the quality of products that you will be getting. Low-quality material used in the manufacturing process can put you and your surroundings at risk. So, it is quite mandatory to check everything beforehand.
Maintenance of Safety Standards
Checking if the brand follows the internationally recognized safety standards or not is nothing but mandatory. Safety should always be the utmost priority in case of choosing an LPG brand. A faulty cylinder can cause fatal accidents.
The first thing you should check is the brand’s cylinder specifications. The company should maintain DOT 4BA 240 specifications for 12 kg cylinders and DOT 4BW 240 specification international standards for 35 kg cylinders.
The cylinders should have an outer body thickness of 2.65 mm for 12kg and 3 mm for 35 kg. They should have zinc metallization and electrostatic polyester-based powder coating to avoid any rusting and ensure durability.
The hydrostatic, physical, and weld tests should be made according to DOT-4BA (HSE) specifications. The valves used in the cylinders must be UL, EN or ISO certified to avoid any safety risk.
To minimize the risk of accidents and choose a good LPG brand, checking if it follows international safety standards is a must.
There are many good LPG brands out there in the market. However, not all of them have enough distribution channels or LPG supply. So, checking if the LPG brand of your choice has proper distribution is necessary.
If you want to pick an LPG brand and keep using it for a long time, you may want to tap into their supply chain. If you don’t have enough LPG supply or distributors, you might have to change the brand after a few months of use.
So, you must ensure the availability of the brand. Usually, the higher the production and storage capacity of an LPG company has, the more available it is in the market. Although there may be exceptions to this thumb rule.
Nevertheless, before deciding on a single LPG brand, knowing its distribution channels will come in handy. It will help you to determine if the brand will be able to maintain its availability in the long run or not.
Dealer Point Support
You never know when you will be needing any assistance regarding your LPG solution. So, having an accessible dealer or distributor point support is a thing that you may pay more attention to while deciding on an LPG brand.
Having good dealer point support means if you face any trouble regarding your LPG cylinder, you can just call the dealer for assistance. This kind of dealer point support can prove to be a necessity at times.
Moreover, a good dealer point support can provide you with the necessary info that you need. For example, if you want to refill your cylinder or know about the current LPG gas price in Bangladesh, you are just a call away.
So, you should be very careful while choosing an LPG brand. You need to take in all the information and evaluate between options. Ensure you double-check the attributes we talked about if you want to be on the safer side.
Things You Must Follow While Buying LPG Cylinder
LPG is a flammable gas. So, there are multi-level factors that you must take into consideration if you want a risk-free experience. It is very important to have good domain knowledge about LPG in general.
You already know what to look for in a good LPG supplier. But is it enough to go and buy an LPG cylinder right away? We would prefer to say no. Before buying an LPG cylinder, you should know some things that you must follow.
There are a lot of things that you might want to check before buying an LPG cylinder. However, checking each and everything may not be possible. So, which things are necessary to check you may ask.
To cater to your query we have prepared a list of five essential things that you must ensure before you buy an LPG cylinder. If you follow these five things while buying an LPG cylinder, you should be good to go.
When you first buy an LPG cylinder you may not know about the steps to properly install the cylinder. So, getting an authorized person or a technician to install the LPG cylinder for the first time is recommended by us.
A technician can teach about the safety measures and methods to perfectly install an LPG cylinder. You can use that knowledge to install the cylinder properly after getting a refill. It will help you throughout the process.
Properly installing an LPG cylinder is a must. Any mistakes made in the installation process may lead to a gas leakage later. Gas leakages are very dangerous as they can cause fatal accidents if not taken care of.
So, the first and foremost thing is to ensure that you are taking the help of a technician to install your cylinder while buying it. It can save you from the extra hassle as well as keep you and your surroundings safe.
Use of Certified Accessories
We often see people making the mistake of buying cheap regulators and hose pipes. These are the primary culprit of gas leakage in most cases. So, never cheap out on regulators and hose pipes.
While buying an LPG cylinder for the first time, you must purchase a certified high-quality regulator and hose pipe. These will last a longer period as well as reduce the chances of any gas leakage.
Pairing these with a good-quality gas stove will give you an amazing and safe cooking experience. Without certified accessories, your safety will be compromised and the chances of accidents may increase.
If you are concerned about the price, don’t be. These accessories don’t break the bank. Also, the LPG gas cylinder price in Bangladesh is not much in the first place. So, it gives you room to spend some money on high-end accessories.
The cylinder is the main part of an LPG solution in household and commercial space. It is a steel vessel that contains the LPG inside it. Any damage to the cylinder might expose you to the risk of gas leakage or even deadly accidents.
LPG cylinders are made using high-quality steel and maintaining standard safety specifications. However, after repeated use and transportation, these vessels get very worn out. So, they can be prone to leakage.
So, checking the cylinder condition before buying is important. You must check thoroughly if it has any leakage or not. The best way to check that is by submerging the cylinder into water. If you see bubbles, the cylinder has leaks.
Moreover, check for any major rusting spots. Rusts degrade the integrity of the metal and make it prone to breaking. So, you should always avoid buying an LPG cylinder that is showing rusting tendencies.
Check Seal and Cap
Seal and cap are yet other essential things you should be very careful about. You should not ever accept an LPG cylinder that doesn’t have any seal or cap on it. You may get cheated this way or worse, your safety can be at risk.
A broken seal and cap is an indication that the LPG cylinder was put to use previously. If you buy that LPG cylinder, you might not get the accurate amount of LPG that you are paying for. It also possesses a leakage threat.
Apart from the seal and cap at the top, you must search and check the manufacturing date and retest date of the cylinder. An LPG cylinder that is lying around for a long time may get past the mentioned retest date.
In that case, don’t buy that cylinder. If a cylinder has crossed its retest date that means it has to go through a re-examination before use. It needs to be tested for structural strength, leakages, and overall reusability.
It is wise to avoid unauthorized resellers. Buying LPG from authorized dealers is always recommended.
Getting an LPG cylinder from authorized distributors has many more benefits as well. One of the primary benefits is the opportunity to use assistance if you face any problem. They have a network of expert technicians if you need help.
Moreover, getting refills is much easier if you buy LPG from an authorized distributor. Apart from any exceptional situation, they always have enough LPG cylinders available for you to get refills whereas many retailers might not.
So, if you want to be on the safer side, you should get your LPG from an authorized distributor. Buying LPG from unauthorized sellers can be a threat to your safety and security. Moreover, you can’t fully trust them.
Related Post: Best LPG Dealership in BD
With the increasing demand and growing industry, the adoption rate of LPG as primary fuel will undoubtedly skyrocket in the future. So, it is better to have some domain knowledge about LPG and gas cylinder prices in Bangladesh.
As the current situation progresses, more and more households and businesses are expected to pick up this fuel. And, this will translate into a bigger LPG industry in upcoming years.
So, we have hit the dead-end at last. Thanks for sticking to the end. We wish you the best of luck with your future purchases.