Lack of pipelines makes LPG expensive

Cooking gas prices in T.N. are among the highest in country

The absence of pipelines to bring liquefied petroleum gas (LPG) to Tamil Nadu from refineries elsewhere is turning out to be expensive for consumers in the State, as cooking gas prices here are among the highest in the country. Following the revision of LPG prices on September 1, a non-domestic commercial cylinder containing 19 kg of LPG in New Delhi costs ₹1,694. The rate is ₹1,649.50 in Mumbai, ₹1,770.50 in Kolkata and ₹1,831 in Chennai. The domestic LPG situation is similar, with New Delhi (₹884.50) and Mumbai (₹884.50) having lower prices than Chennai (₹900.50). In Chennai, the price of a domestic cylinder went up by ₹25, and that of a commercial cylinder by ₹75. “Most of the LPG the country procures is from Saudi Aramco, and this is off-loaded first at Mumbai, and later at Mangaluru, Kochi and Thoothukudi before reaching Chennai. Transport costs are higher since the ship has to travel all the way to the Eastern Coast. Delhi gets its supply via a pipeline. Tamil Nadu does not have an LPG pipeline till date. Perhaps it is time for policy makers to lay an LPG line to the State,” explained an industry source, who, however, pointed out that people in the State were opposed to pipelines. A pipeline from Kochi to Salem via Karur is 70% complete, but the project is stuck due to opposition in Tamil Nadu.