Fuel companies revise the prices of their products on the first of every month. This is expected to happen on 1st September as well. There has been no change in the prices of domestic LPG since July. At the same time, there was some relief in CNG prices in August.
New Delhi. At the beginning of every month, fuel companies release new rates of products. Companies sometimes increase the prices and sometimes they decrease it. On the first of August, oil marketing companies had reduced the price of commercial LPG cylinders (19 kg) by Rs 36. This did not directly benefit the domestic LPG consumers.
Currently, the price of domestic LPG cylinder in Delhi is Rs 1,053. Let us tell you that in July its price was the same in Delhi. The price of LPG depends on the cost of crude oil along with several other factors. Same is the case with CNG as well. Due to the huge increase in CNG, the budget of the drivers was completely faltered. The prices increased so much that the taxi services had to increase their minimum fare and that too put a burden on the pocket of the common man. The price of CNG per kg in Delhi is currently Rs 75.61 (IGL), Rs 80 (MGL) and Rs 83.9 (Adani Gas)
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Will the price increase in September?
As we told you that the prices of LPG and CNG depend on many factors. Of which the biggest factor is the crude oil price. There has been some increase in the prices of Brent crude and at present it has reached $ 99.80 per barrel. However, it still remains around $100. Therefore, the scope of reducing the price by the oil marketing companies is not visible at the moment. There has been no major change in the prices of domestic LPG since the last 2 months, so it may see a slight increase. Talking about CNG, companies have increased its prices continuously for the last few months. There is little chance of both decrease or increase in it. It is possible that CNG prices may remain at this level.
How is the price determined?
The import parity price formula is used to determine the price of LPG. This includes crude oil price, sea freight, insurance, custom duty, port cost, dollar to rupee exchange, freight, oil company margin, bottling cost, marketing expenses, dealer commission and GST. Almost the same factors affect the prices of CNG as well. A major difference in this is that CNG is not made from crude oil but from natural gas. Therefore, there is an effect of natural gas on the prices of CNG. India imports more than half of its natural gas requirement.
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