The ministry of petroleum has decided to end the policy of different prices of Liquefied Petroleum Gas (LPG) so that it can be sold at same price across the country.
The petroleum ministry has sent a summary to the Economic Coordination Committee (ECC) to set the price of commodity at Rs 92.50 per kilogram for all parts of the country by fixing it at Rs 92,529 per ton.
Under the proposed LPG Policy 2014, the Oil and Gas Regulatory Authority (Ogra) will issue price notification as the price will be regulated, and there will be imposition of petroleum levy (PL) and Gas Infrastructure Development Cess (GIDC) on local LPG producers while the collected amount under PL and GIDC will be used for giving subsidy on imported LPG so that price of foreign and local LPG can be sold on same price across the country.
In the year 2000, the policy of different price was implemented and since then, the domestic LPG market has been experiencing various challenges including demand supply imbalance, cartelisation, litigations and price distortion.
It is pertinent to mention that during the summer season the LPG price goes up to Rs150 per kilogram while in winter it boosted as high as up to Rs 200 kilogram.