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Non-subsidised domestic LPG cylinders have become costlier by Rs 26 effective today. And prices could go up further in December as winter settles.
However, the price of subsidised domestic LPG remains unchanged at Rs 399 for 14.2-kg cylinder.
Public sector oil marketing companies (OMCs) have increased the prices to Rs 922 a cylinder from Rs 895.50 last month in keeping with international prices.
This follows a recent Government decision (in September) that the market rate of non-subsidised LPG cylinders would be notified by the OMCs on a monthly basis.
The Government has restricted the supply of subsidised LPG cylinders to each consumer to six a year.
According to the global trend, LPG prices firm up in winter as demand goes up, while in summer, the prices soften.
However, these trends are unpredictable, industry observers said.
Domestic LPG price depends on the Saudi Arabian price and currency value during the month under review.
Simply put, the domestic pricing is based on the formula of M-1 (price of the previous month).
Hence, the November price would depend on October’s international price.
A senior oil company official said that the price of non-subsidised domestic LPG was around Rs 900 a cylinder because the Government had done away with customs and excise duty on it.
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