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Richa Mishra

New Delhi, Nov. 28

Prices of commercial liquefied petroleum gas (LPG) or non-domestic LPG is all set to rise. If there is an increase, it will be the third time since September. “If the current trend is anything to go by, then December may see an increase of Rs 65-68 for every 19-kg cylinder,” sources told Business Line.

In September, commercial LPG prices increased Rs 135-Rs 150/19-kg cylinder to Rs 811.19-944.35. Subsequently, in November, the retailers increased the price again by Rs 69-75/19 kg cylinder to Rs 880.92-1,020.

Global prices

With the LPG prices in the international market hardening by about $70 a tonne (the international prices are currently ruling around $720 a tonne), the prices here are also expected to increase, the sources said. LPG prices for non-domestic use are reviewed on a monthly basis by the retailers in tandem with international prices.

Asked how the pricing of commercial LPG is derived, sources said: “The impact of the current international price will be felt in the subsequent month, as there is a time lag of four to six weeks between the international and domestic commercial LPG prices. Hence, the December price would depend on the international price in November.”

However, the increase in price has not affected the sector's growth. The category has seen a 37 per cent rise in October year-on-year. Mr S. K. Hazra, President of Indian LPG Industry Association, said: “The growth has been due to the economy picking up. Also it appears that PSUs have been able to control the diversion of domestic LPG for commercial use.” It is sold at a price fixed by the Government.

AUTO LPG

Though the commercial LPG price may rise, the price of auto gas is unlikely to be changed. In case of auto LPG, the public sector oil marketing companies are under pressure to keep it at a price lower than the price of petrol to make it attractive for consumers.

More Stories on : Petroleum

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