The government provides subsidies to customers of certain states to offset the heavy freight charges that they face.
The petroleum companies have increased the price of domestic LPG cylinder by Rs 15, effective from October 6
- Last Updated:October 06, 2021, 09:26 IST
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Starting from Wednesday, you have to shell more for non-subsidised liquefied petroleum gas (LPG). The petroleum companies have increased the price of domestic LPG cylinder by Rs 15, effective from October 6. “Petroleum companies have increased the price of domestic LPG cylinders by Rs 15. The price of a non-subsidized 14.2 kg cylinder in Delhi is now Rs 899.50. The new rate of 5kg cylinder is now Rs 502. The new rates are effective from today,” ANI tweeted.
The LPG price in India can be calculated based on the import parity price (IPP). The IPP is based on the LPG price in the international market given that a country imports the fuel. Saudi Aramco’s LPG price, includes the FOB (free on board) price, ocean freight, insurance, customs duties, port dues and so on. This price is quoted in dollars and then converted to Rupees. This is then added on top of the in-country prices such as GST, excise duty, freight charges and so on. The price for LPG is reset every month in India on this basis. LPG cylinder prices change from one state to another depending on the state-wise taxes, much like petrol and diesel.
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Source: News18