Since the government announced a rate increase of Rs. 23.9 per kilogram, the cost of liquefied petroleum gas (LPG) has significantly increased. The official price for August is Rs. 201 per kilogram, a significant rise from July’s price of Rs. 177 per kg.
Growing fuel consumption, particularly in areas that use piped gas, as well as aggravating circumstances such substantial product shortages and delayed imports are the main causes of this price increase.
Price of 11.8 Kg LPG Cylinder in August 2023
The price of a home 11.8 kg cylinder has increased, according to the OGRA, from Rs. 2,092.13 in July to Rs. 2,373.64 for August 2023. This shows a gain of about 281 rupees in just one month.
LPG’s current producer price is Rs. 159,855.79 per ton, but its consumer price is presently Rs. 201,155.79 per ton. A 11.8 kilogram cylinder would now cost the manufacturer Rs. 1,886.3 as opposed to Rs. 1,604.79 from the previous month as a result of the price adjustment.
Due to the current pricing structure, users pay two taxes. Both at the manufacturing and consumer levels, taxes are levied, which raises gas prices for customers. The rising price of LPG is mostly due to this taxing structure.
Consumers and businesses are preparing for the effects of LPG price increases. As LPG is utilised to raise the calorific or heating value of regasified LNG for use in heavy industries and utilities, there is anticipated to be an increase in LPG demand in the upcoming months.
This action is being taken in response to an increase in LNG prices brought on by increased demand from consumers in Europe and North Asia, a lack of supplies because of armed conflicts, and other facility outages.
End users are looking at alternative fuels to meet their energy needs in light of the current market developments.
The ability to transition to these alternatives may be constrained by infrastructural and boiler issues, especially if the heat content is too high. In the interim, LPG continues to be a valuable resource with a rising cost.
To read our blog on “For March, govt. has raised LPG rates by Rs. 11.56/kg,” click here.
