Why your LPG cylinder prices may change much more frequently soon
The new year is almost here and many things are set to change and that may well include how LPG cylinder prices are set. As far as your cooking gas rates are concerned, you may find that you are paying different rates week to week. Things seem to be moving in the direction of shortening the period of setting rates that consumers have to pay.
In December, LPG cylinder prices have been revised on the 1st and 16th. This is based on the average rate of benchmark international fuel and foreign exchange rate in the preceding fortnight. However, according to DNA, oil companies are now planning to change the prices on a weekly basis. Now, consumers have already got used to daily revision in petrol and diesel rates and surely, LPG cylinder prices changing on a much more frequent basis would not be a problem. However, please note that no official decision has been taken on this.
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The reason is to make the process much more efficient as was done earlier with petrol and fuel prices. To better account for the daily fluctuations in the prices of petroleum products, oil companies are now planning to change the prices on a weekly basis. This way oil companies can better average out the prices and ensure that they do not face the prospect of loss, which is currently happening.
Oil companies announce petrol and diesel prices every day at 6 AM.
Currently, the LPG gas cylinder price that consumers pay for a non-subsidised 14.2 kg gas cylinder in Delhi and Mumbai is Rs 694. In Kolkata it will be Rs 720.50. In Chennai it is Rs 710. LPG gas cylinder price hike was made effective from December 15, as per Indian Oil Corporation. The price of 5-kg cylinders were increased too by Rs 18 and those of the 19-kg cylinders by Rs 36.50. Each household is allowed a maximum of 12 LPG cylinder purchases per year at subsidized rates.
Much to the dismay of the common man, oil companies have raised cooking gas prices by as much as Rs 100 in December.