LPG Price Hike Likely: Gas companies fix new prices on the first of every month. Looking at the international prices, it seems that once again the price of domestic gas is going to increase. In May, the price had increased twice.
LPG Price Hike Impact: The prices of LPG (Gas Cylinder) may increase once again on 1st June in the country. It is feared that this time the price of domestic LPG is going to cross Rs 1100. In such a situation, you can save some by booking gas before the 1st date. At present, the price of domestic LPG cylinder in the country’s capital Delhi is Rs 1003, in Mumbai Rs 1002.5, in Kolkata Rs 1029 and in Chennai Rs 1058.
Companies (Oil Marketing Companies) had increased the prices of domestic LPG twice in May. The first rate was increased on 7 May. On this day, the price of 14.2 kg cylinder has increased by Rs 50. Then on May 19, an increase of Rs 3.5 was made. That is, a total of Rs 53.5 was increased on LPG in 1 month. Looking at the prices of gas in the global market, it is expected to rise again on June 1.
Commercial cylinder price was so much
On May 1, the prices of 19 kg commercial cylinders were increased. Its price in Delhi was increased by Rs 102. After this, the price of commercial cylinder was increased to Rs 2355.5 in the capital. At the same time, the price of 5 kg small LPG cylinder was increased to Rs 655.
That’s how the price is fixed
The price of LPG gas in the country is determined by the import parity price. It is also called IPP. Because most of the supply of gas in India is based on import, so IPP is also determined according to the prices of the international market.
The benchmark of LPG in India is Saudi Aramoc’s LPG price. On the basis of the price at which the world’s largest oil company sells LPG, its price is decided in the domestic market. The price of LPG is not only the price of gas. This includes other factors like custom duty, transportation and insurance.
These reasons also have an effect
The main reason is the price of gas in the international market. However, one reason is the weakening of the rupee against the dollar. Actually, this purchase takes place on the dollar in the international market and India has to pay a higher price due to the weakness of the rupee. Apart from this, at present the supply of gas is not being able to meet its demand. This is also a reason for the increase in gas prices.
