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.
This Saudi published price is based on