How fuel and LPG prices are set in Bangladesh

Fuel oil and cooking gas (LPG) prices are set in two different places, under two different rules. Here is who sets which, and why they move.

Fuel oil: the automatic pricing formula

Diesel, octane, petrol, kerosene and furnace oil are imported and distributed by the Bangladesh Petroleum Corporation (BPC). Since March 2024 the government has used an automatic pricing formula to keep local prices in line with world prices. The sum is redone every month and a new price is announced when it is needed.

The formula takes in:

• the world price of oil and the dollar exchange rate
• import duties, advance income tax and VAT
• transport, storage and operating costs, and BPC’s and dealers’ margins

So when world prices fall or the taka strengthens, local prices can come down, and the other way round. In months when the sum barely moves, prices stay as they are.

The latest prices (from 21 September 2026, per litre): diesel Tk 135, kerosene Tk 155, petrol Tk 160, octane Tk 165. Today’s are on fuel prices, which updates from BPC’s published prices.

LPG: BERC’s monthly price

The price of private companies’ LPG cylinders is set every month by the Bangladesh Energy Regulatory Commission (BERC), usually announced early in the month. It starts from Saudi Aramco’s monthly contract price (CP): the world price of propane and butane, the two gases in LPG. On top come the exchange rate, import, bottling and transport costs, and the dealer’s and retailer’s commission.

BERC announces a price per kilogram and per cylinder size. In October 2026, for example, a 12 kg cylinder was Tk 1,837, about Tk 153 per kg. The latest is on LPG price. The state company’s 12.5 kg cylinder is priced separately.

Cylinders are not always sold at BERC’s price; when supply is short, shops asking more is a frequent news story.

When you buy a cylinder

• Know BERC’s latest price and check it at the shop; if you are asked for more, ask for a receipt.
• Check the seal and the weight. The empty cylinder’s weight is marked on it; a full one should weigh that plus the gas.
• Check the expiry date and for leaks. Don’t take an old or damaged cylinder.

Sources

• BPC: local sale prices of petroleum products
• BERC’s monthly LPG price announcements and news reports of them
• Reports on the automatic fuel pricing formula (The Financial Express, Prothom Alo)