How LPG prices in India are determined

• LPG prices are determined using an Import Parity Price (IPP) formula based on international product prices.
• The contract prices of Saudi Aramco, a public petroleum and natural gas company in Saudi Arabia, are used as a guideline for this calculation.
• Saudi Aramco's LPG prices, free-on-board prices, ocean freight charges, customs duties, and port dues are all factored into the IPP formula.
• The rise in global prices is a major reason for the increase in the Indian rate.