Harsh jha


New delhi:  Recently the price of LPG (liquefied petroleum gas) has double since 2014. In 2014 the price of a cooking cylinder was ₹ 410  where as now it has gone ₹819.

How the price of LPG determine? It is determine through the formula of IPP ( import parity price) which is unlikely based on international product price.here Saudi Aramco (a Petroleum gas company) is considered as a benchmark for the calculation. Same as  like Reliance is considered as a benchmark of stock market in India . 

 IPP formula includes Saudi Aramco LPG price, free on board price ( from company to port), ocean freight charges, bottling charges , marketing cost, margins for OMC's, dealer commission and goods and service tax (GST) are also factored before determining the final LPG retail price. 

Currency fluctuations also affect the price (1$=72₹) 


Source- gas agency

What are the gases in cylinder? In a cooking gas cylinder there is a light hydrogen gases in which 40% is propane and 60% is butane. And has the uses of fuels changes to car, truck etc .the the Quantity of propane also rises. 

There is one more reason of rise in price of LPG that the price of propane and butane has increased by Saudi Aramco. 

There was a subsidy also but why it is eliminated as of now ?? Yes under the DBTL (direct benefit transfer for LPG consumer) scheme which came in 15 November 2014.In 2019 when international prices of (crude oil) got dipped during covid -19 Pandemic then the government decided to eliminate the subsidy on LPG. As a result Delhi and other states government stopped giving subsidy under DBTL. 


But now when the inflation is on the peek. The government should have to pay the subsidy. 

Who will suffer?  In India there is 28.8 crore LPG consumer. And there has been seen 95% of increase in LPG consumer since in 2014 with 14.8crore consumer. And the mainly owning consumer are under pradhanmantri ujjawala yojana . There are total 8 crore consumer under this scheme and they  all are below poverty line . So the most of them have to suffer. 

In many areas they have dumped cylinder and started using that same wood which they were using before. But those who are poor  And don't have their concrete house have to suffer difficulties in rainy season I.e they don't have a permanent shelter where they can store woods.