Cooking Gas Cylinder prices coming down? Few Things to know!

Sowmiya Sriram
Cooking Gas Cylinder prices coming down? Few Things to know!
We have been seeing that the price of cooking gas cylinders is increasing month by month. Even two days ago, the price of cooking gas cylinder used for households was increased by Rs.50. It is known that the price of cooking gas cylinder is increasing every month and on July 5, the price of an LPG cylinder of 14.2 kg for household use was increased.
   
 Following this, the price was hiked to Rs 859.50 in august that year and subsequently to Rs 884.50 in September. While it was at the same price till march of this year, suddenly the price of crude oil in the international market crossed 100 dollars per barrel and the cylinder price rose by Rs.50 again in May.
Subsequently, the price of the cylinder was hiked twice, reaching Rs 1,003 per cylinder in Delhi. Therefore, it is noted that from July 2021 to July 2022, the price of a cylinder increased by Rs 218.50 due to the increase in crude oil prices.
Cylinder prices are calculated based on Import Parity Price (IPP). Since india imports most of its crude oil, it uses the IPP formula. The value of the rupee against the US dollar is a major factor when calculating the price of a cylinder. Other domestic factors including freight costs, oil companies' costs, marketing costs, dealer commissions, and GST also determine the price of cylinders.
As the price of crude oil has been falling for the past few days, there is a possibility that oil companies may consider reducing the price of a cylinder.
Anushka Arora, Principal and Founder, ABA Legal office said that the recent rise in cylinder prices could be due to various factors. There are many reasons for the rise in cylinder prices. Chief among them are rising crude prices, rising inflation, and Russia-Ukraine war, and depreciation of the rupee, he said.

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