Price of gas cylinder to come down very soon; government has taken such a step

The price of the gas cylinder will decrease soon. If you are buying a gas cylinder every month and are worried about the rising price of gas, then there is good news for you. The government has formed a committee to review the pricing of gas produced by major oil-producing companies like ONGC and Reliance. The Ministry of Petroleum and Gas issued an order and constituted the review committee under the leadership of Kirit S. Parikh, a former member of the Planning Commission.

This committee formed by the government will advise the gas consumers about the fair price of gas. The committee also includes representatives from private companies involved in urban gas distribution, public gas company GAIL India Limited, Indian Oil Corporation, and private companies associated with the Ministry of Fertilizers. In 2014, the government used the countries’ gas prices to find a formula to determine the price of domestically produced gas.

According to this formula, the price of gas was several times lower than the cost of production till March 2022. But in the last few months since the beginning of the Ukraine-Russia war, this rate has increased rapidly. Gas prices from old gas fields have doubled since April to $6.1 per unit (MMBTU) and are expected to exceed $9 per unit by next month. The ministry has asked the committee to suggest the right price of gas to the consumers.

Recently, on August 18, the price of a gas cylinder fell to Rs 25. Earlier in July, the price of a cooking gas cylinder was increased by Rs. 25.50. In June, the domestic gas cylinder price was Rs 809. It increased to Rs 834 in July. On the other hand, if we look at the gas prices that have increased since January, the price of a cylinder has increased by Rs. 165 in the last 8 months. It is worth noting that the oil company reviews the LPG cylinder price every month and then decides whether to increase or reduce it. The price of the cylinder varies greatly as each state has different taxes.