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Petrol, diesel have gone up LPG: Prices have risen three times a month

Bijaya Laxmi by Bijaya Laxmi
February 26, 2021
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Petrol, diesel have gone up LPG: Prices have risen three times a month
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New Delhi: The price of LPG has tripled this month to Rs 720.50. The sale price of LPG depends entirely on the international market price. In India, the price of LPG is determined by the import price. This is called the Import Policy Price (IPP). In the international market, the IPP is determined by the price of LPG. It is assumed that all LPGs have been imported. The price of LPG in Saudi Arabia is being considered. Its free on-board (F4OB) price is now $ 528.80 per ton. The Jet 7 Kero (Arab Gulf) is priced at $ 59.18 per barrel. When determining the price of an LPG cylinder sold in India, the FOB price, shipping costs, insurance premiums, customs and port handling costs are taken into account. It is first calculated in dollars and then converted into Indian currency. This is followed by the market value of LPG outside the country, including LPG transportation charges, marketing costs, oil companies ‘margins, bottling fees, dealers’ commissions and GST. If the LPG becomes more expensive in the international market or the currency weakens against the dollar, its direct impact is reflected in retail prices. That’s why LPG prices have risen three times in the country this month. LPG prices also rise at the same rate as crude oil prices rise in the global market. Crude oil prices are now hovering around $ 43 a barrel.

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