Lpg price double in 7 year.

 

New delhi : LPG cylender price double in 7 years. Adding to the woes of consumers, the price of liquefied petroleum gas (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 a cylinder in May 2020 to Rs 819 as of March 1, 2021. In 2021 alone, prices were hiked by Rs 125 per cylinder with three consecutive hikes in February, going against the conventional practice of having only one hike in a month. 

 

The retail selling price of domestic gas was ₹410.5 per 14.2-kg cylinder on March 1, 2014. This month, the same cylinder costs ₹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 includes Saudi Aramco’s LPG prices, free-onboard price, ocean freight charges, customs duties and port dues.

 

Local freight charges, bottling charges, marketing costs, margins for OMCs, dealer commissions and Goods and Services Tax are also factored in before determining the final LPG retail price in India.

 

The LPG gas now a days common thing in indian city and also village. In previous year small village people use coal or dry branchess of tree but now a days the use of brancess of tree is low .

 

The most important differences come down to the boiling point of the gases. Propane has a boiling temperature of -42°C, whilst butane has a higher boiling point at -2°C. This means that propane will continue to vaporize and turn to gas even in colder climates.

 

The Indian Basket Crude oil price increased from an average of $20.20 a barrel in May 2020 to $64.54 a barrel on March 2, 2021. Brent crude prices increased to $63.77 a barrel at one point on March 2 as compared to a historic low of $19 a barrel in April 2020.

 

In the Budget last month, Finance Minister Nirmala Sitharaman had provided Rs 12,480 crore as LPG subsidy for 2021-22, as compared to Rs 25,520 crore in 2020-21 and Rs 35,605 crore in 2019-20.

 

India has a total of around 28.8 crore LPG consumers, of which13.5 crore are served by Indian Oil Corporation, 7.4 crore by Bharat Petroleum Corporation and 7.9 crore by Hindustan Petroleum Corporation. There has been a 95% increase in India’s LPG consumption from 14.8 crore in 2014-15.