(a) whether the price of LPG in the country is more than its price in
international market;
(b) if so, the details and reasons therefor;
(c) the current price of LPG in international market; and
(d) the price at which LPG was purchased from other countries during
each of the last three years?
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI R.P.N. SINGH)
(a)&(b): No, Madam. The retail selling price of Domestic LPG in the
domestic market is modulated by the Government and is lower than its price
in the international market. The current retail selling price of Domestic LPG is
Rs. 345.35/cylinder at Delhi. Currently, the Government has been providing a
subsidy of Rs. 22.58 per cylinder on Domestic LPG and the Public Sector Oil
Marketing Companies (OMCs) are incurring an under-recovery of Rs. 297.80 per
cylinder on the sale of Domestic LPG.
(c): As per methodology given in the “PDS Kerosene and Domestic LPG Subsidy
Scheme, 2002â€, the price of Domestic LPG is worked out as weighted average of
Propane and Butane prices with weightage of 40% and 60% respectively. The
Saudi Aramco contract price for Propane and Butane for the month of March
2011 is as under:
(US $/ Metric Tonne)
Propane 820 Butane 860
(US $/ Metric Tonne)
Year Import Cost 2007-08 763.86 2008-09 712.66 2009-10 661.81