Gassed Up

Shell Gas may have to jack up prices by as much as Rs.
100 a cylinder come September, as it battles a price build up that’s straining its bottom-line.
Shell Gas may have to jack up prices by as much as Rs. 100 a cylinder come September, as it battles a price build up that’s straining its bottom-line. Currently the cost of supply based on a two month average has to be in the region of Rs.
793 a 12.5 kilo cylinder, but is retailing at Rs.
690 after the last increase about a month ago.

“Taking those numbers, two month prices should be at least Rs.
100 more on a cylinder based on the cost of supply,” outgoing Country Director, Roberto Moran told a stakeholder workshop on Thursday.

Estimates of September delivery for LPG are at US$ 380 a tonne – a record high to date.
The company buys at Saudi Aramco contract prices fixed at the start of each month, with fixed costs added on.