October 6, 2021: The price hikes announced by the oil marketing companies today, October 6 is expected to dampen the Puja mood. With Durga Puja just days away and other festivities like Diwali round the corner, the hike in LPG cylinder and petrol and diesel prices is expected to hit the common man hard.

Price of LPG cylinder has been raised by Rs 15 a cylinder and that of petrol has been raised by 30 paise a litre and diesel by 35 paise a litre. This is the second straight hike in diesel and petrol prices. Yesterday, October 5, price of petrol was raised by 25 paise a litre and diesel by 30 paise a litre. That means price of petrol has gone up by 55 paise per litre in 2 days and diesel by 65 paise a litre.

Prices of LPG cylinder have been hiked on Wednesday, October 6 for the fourth time in four months. Price of LPG cylinder has been raised by Rs 15 per cylinder from today, October 6. Now a 14.2 kg domestic gas cylinder would cost Rs 948.50 in Guwahati. Price of LPG cylinder has been hiked to reflect the rising international crude prices.

This is the fourth hike in four months since July this year. In July prices were raised by Rs 25 per LPG cylinder. In August, prices were raised by another Rs 25 per cylinder and again in September LPG cylinders got costlier by Rs 25 each. Since July till October, LPG cylinder prices have gone up by Rs 90 a cylinder.

The price of LPG is decided based on an import parity price (IPP) formula, which is based on international product prices. Saudi Aramco’s contract prices are considered a benchmark for this calculation. The IPP formula includes Saudi Aramco’s LPG prices, free-on-board price, ocean freight charges, customs duties and port dues.

Local freight charges, bottling charges, marketing costs, margins for OMCs, dealer commissions and Goods and Services Tax are also factored in before determining the final LPG retail price in India. In addition, currency fluctuations also affect prices.