Pradhan Mantri Ujjwala Yojana

The Ministry of Petroleum and Natural Gas recently announced that more than 14 crores of free of cost cylinders have been provided under Pradhan Mantri Ujjwala Yojana to the beneficiaries of the scheme during covid-19 crisis.

What is the current scenario of prices of LPG in India?

The price of non-subsidised Liquefied Petroleum Gas cylinders of 14.2 kg is to remain at 694 rupees per cylinder. The commercial customers will have to pay an additional amount of 17 rupees per cylinder. Also, the new rate of 19-kilogram LPG cylinder in Delhi has increased to 1349 rupees as compared to the previous price of 1332 rupees. In Kolkata the price has increased by 23 rupees and in Chennai the prices have increased by 17 rupees.

What is the reason behind the recent LPG price rise?

The Oil marketing companies revise the prices of gas cylinders on the first day of every month. The price revise is based on the international market rates. The recent price rise is due to changes in international price changes.

How are LPG prices fixed in India?

The LPG pricing in India is done on the basis of Import Parity Price. The Import Parity price is determined based on LPG prices in the international market. It is based on LPG prices of Aramco of Saudi Arabia. It also includes free on-board prices, custom duty, Ocean freight charges, insurance, port dues, etc. The retail selling price of the non-subsidised LPG cylinder include the cost of Inland right, GST, bottling charges, marketing costs and margins charged by the Oil Companies, dealer Commission.

Therefore, a weak performing rupee will also lead to higher prices of LPG in India. The current price rise in the recent past few months is due to this reason.

What is Import Parity Price?

According to the United Nations World Food Programme, the Import Parity Price is the price at the border of a goods being imported. It includes International transport cost and tariffs.

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