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Shell Gas says cylinder prices could spiral to Rs. 1020 levels by December, come winter, an accumulated price squeeze and a US$ 180 mn loss for the first nine months this year. Current global Liquid Petroleum Gas (LPG) prices have already overshot expected winter targets of US$ 400 a tonne, and expected retail rates in the region of Rs. 900 a cylinder.
Prices have been raised thrice this year, the last one a revision upwards in September to Rs. 789 a 12.5-kilo cylinder, but prices following global crude, is on its way up.
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World prices for Liquid Petroleum Gas (LPG) have soared from US$ 339.45 per MT levels in June to July this year, hitting US$ 436 per MT in November.
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Factoring in winter premiums, LPG prices that parallel crude are expected to climb in December before any sign of stabilising, if at all.
The September increase was based on June prices, with Shell saying the accumulated lag to date, and the pressure of keeping prices down is straining its bottom line.
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