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Old 23rd January 2008, 15:53   #1
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Default Does Auto LPG Price Reduce in Summer?

Guys, I heard from one of my friend who thinks Auto LPG price will reduce in Summer and increase in winter. Since many in BHP family will be owning LPG fitted cars for over a year, probably they can answer this question for me, thanks in advance.
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Old 23rd January 2008, 16:20   #2
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Crazy question! I wanted to move it to technical section first thinking you were taking some technical angle to the whole thingto argue a case... Not so sure anymore.

So whats the logic?
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Old 23rd January 2008, 16:29   #3
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YES! And it had been discussed earlier too
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Old 23rd January 2008, 16:33   #4
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From what I see - there are only signs of it going up.
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Old 23rd January 2008, 17:07   #5
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All other things being equal, LPG price will see a seasonal variation (winter=higher demand=higher price). However, if the crude prices continue to go up, the reduction in demand need not necessarily bring about a reduction in LPG prices

Let me put it this way :" The rise in LPG price will be lesser in summer than in winter"

However, i guess we will see some , if not significant dip in Auto LPG Price by April.
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Old 23rd January 2008, 17:27   #6
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Dunno, the Auto LPG prices are quite high right now. I hope they go down though. Although with the current fuel price trends worldwide even though we indians are over charged for our fuel, prices look like they would go up in the summer.
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Old 23rd January 2008, 19:15   #7
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Guys,

Is there any technical reason (even speculative)?

Or is this thread talking about deman/supply and/or politics???
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Old 23rd January 2008, 19:57   #8
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During winter, LPG is used for heating and hence a higher demand and so higher prices! While we can expect it to come down during summer, but still questionable at current crude prices!
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Old 23rd January 2008, 20:58   #9
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Quote:
Originally Posted by anandpadhye View Post
Guys,

Is there any technical reason (even speculative)?

Or is this thread talking about deman/supply and/or politics???
Nothing Technical Guys, its only only about demand, I happen to come across this
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Old 29th January 2009, 14:15   #10
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Just a wild guess...in winter the density of LPG could be higher so the gas company is giving out more gas per liter than in summer. Any thoughts?
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Old 29th January 2009, 14:25   #11
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I think who is in power after the elections will have a role in it. Non-domestic LPG is not subsidized to one should logically expect a price drop. However, the degree of cross subsidy makes logic irrelevant. I fact I think the cut in doemstic LPG is purely political and has no merit. This is even more important when one considers for every rupee in subsidies the govt. has to collect more than Rs.2 in taxes!

Last edited by sgiitk : 29th January 2009 at 14:27. Reason: sentences added at the bottom
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Old 4th February 2010, 12:02   #12
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Quote:
Originally Posted by AirWind View Post
During winter, LPG is used for heating and hence a higher demand and so higher prices! While we can expect it to come down during summer, but still questionable at current crude prices!
+1 to that. From what i have heard is across the world . LPG is used for heating in homes and offices. LPG being freely priced in india and internationally, demand incraeses and hence prices.

prices normally start coming down around march and stay in teh mid 25's till about november every year.

have been experiencing this for the last 2 years since I am running the car on LPG .
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