Price Build-up of Domestic Subsidized LPG ( 14.2 kg Cylinder) at Delhi
Sr No.
1*
2*
3
4*
5*
6*
7*
8*
9*
10*
11*
12
13*
14*
15*
16*
17*
18*
19
20
21
Elements
FOB Price at Arub Gulf of LPG
Add: Ocean Freight from AG to Indian Ports
C&F (Cost & Freight Price)
OR
Import Charges (Insurance/Ocean loss/LC Charge/Port dues)
Basic Customs Duty
Import Parity Price
(Sum of 3 to 5)
Refinery Transfer Price (RTP) for Domestic LPG
(Price Paid by the Oil Marketing Companies to Refineries)
Add : Inland Freight, Delivery Charges etc.
Add : Marketing Cost of OMCs
Add : Marketing Margin of OMCs
Add : Bottling Charges (Filling and Cylinder Cost)
Total Desired Price
(Sum of 7 to 11)
-Before Excise Duty, VAT and Distributor Commission
Less: Subsidy by Central Government
Less: Under-recovery to Oil Marketing Companies
Price charged to Distributors (bottling plant price) (12-13-14)
- Excluding Excise duty and VAT
Add: Excise duty (Including Education cess)
Add: Distributor Commission
Establishment charges - ` 26.06/cyl; and
Delivery charges - ` 18.00/cyl
Add: VAT (Including VAT on distributors' commission) applicable for
Delhi
Retail Selling Price (Sum of 15 to 18)
Retail Selling Price at Delhi (Rounded off)
Under Recovery due to Rounding down
* The explanatory note are given in the attachment
** Monthly RTP is weighted average of all Indian pricing Ports
Unit
1-Nov-14
$/MT
$/MT
$/MT
`/cyl
`/cyl
`/cyl
`/cyl
744.19
46.63
790.82
688.96
5.86
0.00
694.82
`/cyl
`/cyl
`/cyl
`/cyl
`/cyl
694.82
39.51
10.52
6.22
38.68
`/cyl
`/cyl
`/cyl
789.76
22.58
393.77
`/cyl
`/cyl
373.41
0.00
`/cyl
44.06
`/cyl
`/cyl
`/cyl
`/cyl
0.00
417.47
417.00
0.47
Element wise explanation of Price Build up of Domestic Subsidized LPG :
Sr. No.
1
2
4
5
6
7
Elements *
FOB Price
Description
FOB of LPG is weighted average of Saudi Aramco contract price (CP) for Butane (60%) &
Propane (40%) for previous month and also includes daily quotes of premium / discount
(published by Platts Gaswire) averaged for previous month.
Ocean Freight
Ocean freight from Arab Gulf to destination Indian ports based on charter hire rates
obtained from Clarkson Shipping Intelligence weekly.
Import Charges
Import charges comprises of Insurance, Ocean Loss, LC Charges & Port dues applicable on
import of LPG.
Basic Customs Duty
Basic Custom duty on domestic LPG is Nil.
Import parity Price (IPP)
IPP represents the price that importers would pay in case of actual import of product at the
respective Indian ports. Import Parity Principle is as envisaged in the 'PDS Kerosene &
Domestic LPG Subsidy Scheme, 2002'.
Refinery Transfer Price (RTP) RTP is based on Import Parity Price. This is the price paid by the Oil Marketing Companies to
domestic refineries for purchase of finished petroleum products at refinery gate.
8
Inland Freight, Delivery
Charges etc.
It comprises of average freight from port to inland locations and local delivery charges etc.
up to distributor.
9
10
Marketing Cost
Marketing Margin
Marketing Cost & Margin as fixed under notified 'PDS Kerosene & Domestic LPG Subsidy
Scheme, 2002'.
11
Bottling Charges
(Filling & Cylinder Cost)
The cost incurred towards filling LPG in 14.2 Kg. cylinders as per notified 'PDS Kerosene &
Domestic LPG Subsidy Scheme, 2002'
13
14
Subsidy by Central
Government
Under recovery to OMCs
16
17
Excise Duty
Distributor Commission
18
VAT (Sales Tax)
Average Subsidy of ` 22.58/Cylinder is provided from Government Budget as per 'PDS
Kerosene & Domestic LPG Subsidy Scheme, 2002'.
Difference between Desired price and actual selling price (excluding Excise Duty, VAT and
distributor commission), represents underrecoveries to OMCs.
Excise duty on domestic LPG is Nil.
LPG distributor commission ` 44.06/Cylinder (effective 23-Oct-2014) is as approved by
MoP&NG.
VAT at applicable rate in respective States. It varies from state to state (up to a maximum of
5% as Domestic LPG is 'Declared Goods' under CST Act). Currently VAT at Delhi is Nil.