LPG Stand For “Liquefied petroleum gas“
The Price of LPG for domestic consumption has increased by 41% or Rs. 237.5 Per cylinder in the last Ten months.
Cooking gas prices in Delhi zoomed from Rs.581.5 (in March 2020) to Rs. 819 as of March 1 2021
MR. “Dharmendra Pradhan” who is the Minister of Petroleum and Natural Gas said,
Retail selling price of Domestic gas was Rs. 410.5 per 14.2-kg cylinder on March 1, 2014 and In This Month i.e in March 2021 the same cylinder cost Rs. 819.
The Price Of LPG is Decided Based On an “Import Parity Price (IPP)” Formula, which is based on international product prices.
Saudi Aramco’s Contract Prices are considered a benchmark for this calculation.
The IPP Formula also includes – Saudi Aramco’s LPG Prices, Free On Board Price, Ocean freight charges, customs duties and port dues, Local Charges, bottling charges, Marketing costs, Margins for OMCs, Dealer Commissions and goods and service Tax are also factored in Before determining the final LPG retail price in India.
In Addition, currency fluctuations also affect prices.
Because of this Weightage of international prices that Government points to the rise in global prices as the major reason for the spike in Indian rates.
