Does Auto LPG Price Reduce in Summer?

someshb · 23rd January 2008, 15:53

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.

Zappo · 23rd January 2008, 16:20

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?

aravindwarrier · 23rd January 2008, 16:29

YES! And it had been discussed earlier too

IronWolf · 23rd January 2008, 16:33

From what I see - there are only signs of it going up.

aravindwarrier · 23rd January 2008, 17:07

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.

elfhelm · 23rd January 2008, 17:27

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.

anandpadhye · 23rd January 2008, 19:15

Guys,

Is there any technical reason (even speculative)?

Or is this thread talking about deman/supply and/or politics???

AirWind · 23rd January 2008, 19:57

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!

someshb · 23rd January 2008, 20:58

Quote:

Originally Posted by anandpadhye

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

bejoyr · 29th January 2009, 14:15

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?

sgiitk · 29th January 2009, 14:25

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!

leadf00t · 4th February 2010, 12:02

Quote:

Originally Posted by AirWind

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 .

23rd January 2008, 15:53	#1
someshb BHPian Join Date: Jan 2008 Location: Bangalore Posts: 32 Thanked: 0 Times	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.
	() Thanks

23rd January 2008, 16:20	#2
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,921 Thanked: 2,684 Times	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?
	() Thanks

23rd January 2008, 16:29	#3
aravindwarrier BHPian Join Date: May 2007 Location: Cochin Posts: 144 Thanked: 14 Times	YES! And it had been discussed earlier too
	() Thanks

23rd January 2008, 16:33	#4
IronWolf Senior - BHPian Join Date: Jun 2007 Location: Benga-loo-ru Posts: 1,569 Thanked: 45 Times View My Garage	From what I see - there are only signs of it going up.
	() Thanks

23rd January 2008, 17:07	#5
aravindwarrier BHPian Join Date: May 2007 Location: Cochin Posts: 144 Thanked: 14 Times	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.
	() Thanks

23rd January 2008, 17:27	#6
elfhelm BHPian Join Date: Oct 2007 Location: Thane Posts: 113 Thanked: 0 Times	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.
	() Thanks

23rd January 2008, 19:15	#7
anandpadhye Distinguished - BHPian Join Date: Apr 2007 Location: Pune Posts: 3,054 Thanked: 3,310 Times	Guys, Is there any technical reason (even speculative)? Or is this thread talking about deman/supply and/or politics???
	() Thanks

23rd January 2008, 19:57	#8
AirWind BHPian Join Date: Jul 2005 Location: Bangalore Posts: 998 Thanked: 404 Times View My Garage	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!
	() Thanks

29th January 2009, 14:15	#10
bejoyr BHPian Join Date: Jun 2005 Location: bangalore Posts: 29 Thanked: Once	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?
	() Thanks

29th January 2009, 14:25	#11
sgiitk BANNED Join Date: Dec 2007 Location: Gurugram Posts: 7,969 Thanked: 4,788 Times	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
	() Thanks