Dhaka, June 30, 2026 (EP Desk) - Saudi Aramco has announced a notable reduction in its official LPG Contract Prices (CP) for July 2026, bringing welcome relief to global LPG importers, including Bangladesh. The lower benchmark prices are expected to reduce the import cost of liquefied petroleum gas (LPG) and may create room for a downward adjustment in retail prices in Bangladesh, subject to regulatory approval.
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The July contract prices, effective from 1 July 2026, set Propane at USD 580 per metric ton and Butane at USD 600 per metric ton, reflecting a significant month-on-month decline in both products.
Weighted LPG Mixture Shows Sharp Decline
Bangladesh and many Asian LPG markets primarily use a 35% Propane and 65% Butane mixture for household and commercial consumption. Based on this standard composition:
The decline in the blended price indicates a meaningful reduction in the international benchmark cost of imported LPG.
Market Analysis
The July CP announcement confirms a clear bearish trend in the international LPG market. Propane prices fell by USD 180 per metric ton, while Butane declined by USD 220 per metric ton compared with June.
The correction appears to reflect softer seasonal demand and improved supply conditions across key producing regions. Since Saudi Aramco’s monthly Contract Prices serve as the principal pricing benchmark for LPG cargoes shipped to Asia, the revised prices are expected to influence procurement costs throughout the region.
Implications for Bangladesh
Bangladesh imports almost all of its LPG requirements, making Saudi Aramco’s monthly Contract Prices a key determinant of domestic pricing.
The Bangladesh Energy Regulatory Commission (BERC) fixes the monthly retail LPG price based primarily on Saudi Aramco’s CP, freight charges, exchange rates, terminal handling costs, VAT and other approved margins. Consequently, the lower July CP is expected to reduce the import cost for LPG marketing companies.
BERC set price month of June Tk 1,855 of a 12 kg LPG cylinder. The retail price of a 12 kg LPG cylinder in Bangladesh has fluctuated significantly over the past year in line with international market movements. With the July benchmark declining by nearly USD 206 per metric ton for the standard LPG mix, industry analysts expect BERC to consider a corresponding reduction in the domestic retail price for July, provided other cost components—including freight rates and the exchange rate of the Bangladeshi Taka against the US dollar—remain broadly stable.
However, the extent of any price reduction will depend on the overall pricing formula applied by the regulator rather than the Saudi Aramco CP alone.
Outlook
The July 2026 Saudi Aramco Contract Prices provide encouraging news for LPG-importing countries. For Bangladesh, where more than four million households rely on LPG for cooking, the lower international benchmark offers the prospect of reduced consumer prices and lower import costs for marketers.
Market participants will now closely watch BERC’s monthly price announcement to determine how much of the international price decline is passed on to consumers. If freight charges and exchange rates remain favourable, Bangladeshi households could benefit from a modest reduction in LPG cylinder prices during July.
