Thread by @myfinology

Non-subsidized LPG Cylinder Price🫕

Year Price
2013 Rs 1031
2014 Rs 1080
2015 Rs 610
2016 Rs 514
2017 Rs 738
2018 Rs 689
2019 Rs 702
2020 Rs 806
2021 Rs 819
2022 Rs 949.50

But, how is the price calculated?

Let's find out⤵️

LPG pricing in India is done on the basis of a formula: Import Parity Price (IPP)

The IPP is determined based on gas prices in the international market, as a major portion of India's consumption is satisfied through imports.

But, how is IPP calculated? 🤔

IPP is calculated as per Saudi Aramco’s LPG price, which is the world’s largest producer.

The price includes costs like:
- Free on board (FOB) price,
- Ocean freight,
- Custom duties,
- Port charges and Insurance cost

#lpgpricehike

The international price for LPG fluctuates in accordance with the price of its main raw material, i.e., Crude Oil.

The price thus calculated in US$ is then converted to IN₹.

#PetrolPrice

On the international price, certain charges are added in India like:

- Inland freight costs
- Oil companies’ margins
- Bottling costs
- Marketing expenses, Dealer commissions
- GST

#DieselPriceHike

The final price thus calculated gives the retail selling price for non-subsidised cooking gas cylinders for consumers across different states.

Please retweet🔁to spread the info.