You might have heard that the cost of cooking gas, known as Liquefied Petroleum Gas (LPG), has gone up a bit in January 2024. The Oil and Gas Regulatory Authority (OGRA) shared this news recently, saying the price has increased by Rs. 1.57 per kilogram. This means the gas cylinders we use at home, like the 11.8 kg ones, will cost Rs. 18.52 more. In this article, we’ll explore why this happened and what it means for us.
OGRA explained in a statement that the price of LPG is connected to two things: the Saudi Aramco Contract Price (CP) and the US Dollar exchange rate. The Saudi Aramco-CP went up by 1.6 percent compared to the previous month, but the US Dollar exchange rate decreased by 0.86 percent. It’s like a balancing act. Because of this, the price for a 11.8 kg gas cylinder increased by Rs. 18.52, making the overall consumer price of LPG go up by 0.61 percent.
Different Factors Affected LPG Prices
| Factors | Percentage Change |
|---|---|
| Saudi Aramco-CP | +1.6% |
| US Dollar Exchange Rate | -0.86% |
| Consumer Price of LPG | +0.61% |
Now, the new price for one kilogram of LPG is Rs. 256.4, a bit higher than the previous Rs. 255. The 11.8 kg gas cylinder, which used to cost Rs. 3,007.35, is now priced at Rs. 3,025.87. These small increases might impact our monthly budgets, so we might need to be more careful with how we use gas at home.
In summary, the reason behind the January 2024 increase in LPG prices has to do with the Saudi Aramco-CP and the US Dollar exchange rate. OGRA is trying to be clear about these factors affecting prices. As we adapt to these changes, it’s important to stay informed and maybe adjust how we use gas in our homes. Keeping an eye on these factors will help us understand any future changes in LPG prices.
