By Admin 
- The price of commercial LPG cylinders increased by Rs 993.
- Global energy prices increased due to Iran-US tension.
- Oil companies are incurring huge losses on LPG.
- Domestic cylinder prices stable, relief to the public.
OMCs loss on LPG: The prices of commercial LPG cylinders have been increased by Rs 993 today. After the increase in the prices of commercial cylinders on Friday morning due to increase in energy prices across the world amid the war between Iran and America, the price of 19 kg commercial cylinder in Gurgaon has now become Rs 3,088, which was earlier Rs 2,095.
Its price in Delhi is Rs 3,071.50. Domestic LPG prices remain the same as before. It was increased by Rs 60 only once in March this year. To protect the general public of the country from inflation, the prices of domestic cylinders have been kept stable. Oil companies are bearing the input costs themselves, due to which they are incurring huge losses.
Companies suffered losses of more than Rs 40,000.
According to an estimate, by the end of May, government oil marketing companies (OMCs) are expected to suffer a loss of approximately Rs 40,484 crore. This loss will be due to ‘under-recovery’ on LPG cylinders as oil prices are high in the international market due to the ongoing tension in West Asia.
According to the report, oil companies are incurring a loss of around Rs 380 on a 14.2 kg domestic LPG cylinder. The Petroleum Ministry said, “Last year also, out of the total loss of Rs 60,000 crore, the burden of Rs 30,000 crore was borne by the state-owned oil companies (PSUs) and the burden of Rs 30,000 crore was borne by the Government of India so that Indian citizens could be protected from the impact of high prices of LPG in the international market.”
Also read: LPG Cylinder Price: Gas cylinder became costlier by Rs 111 to Rs 993, know how much the prices have increased till now?
Why was the price of commercial cylinder increased?
Indian government refiner companies had increased the price of commercial LPG cylinders by Rs 195.50 with immediate effect from April 1. Since then this sequence has continued continuously. The government said that this increase in the price of commercial cylinders is due to a 44 percent increase in the ‘Saudi Contract Price’.
Saudi contract prices, an international benchmark for Indian prices, have increased from $542 per metric ton (MT) in March to $780 per metric ton in April. Global LPG prices have increased because 20-30 percent of the global LPG supply is stuck in the Strait of Hormuz due to the increasing conflict in the region.
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