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The Times of India
The Times of India
National
Sribala Vadlapatla | TNN

Hyderabad: Gas, fuel prices vary as per supply location

HYDERABAD: While everyone is fixated with the rising prices of LPG, petrol and diesel, what has largely gone unnoticed is the fact that your place of residence also determines the rate of these products.

Currently, a 14.2-kg LPG cylinder costs Rs 904 in Nizampet, while in Hyderabad main city it costs Rs 887. Similar is the case with petrol and diesel prices.

Point to note is that even when the prices are on an upward trend, there remains a slight variation in rates from one petrol pump to another.

For gas cylinders, while remote districts in the state have slightly higher rate than cities, price variation is also seen within different parts of a city.

“The variation is due to two reasons,” said Rajiv Amaram, joint secretary, consortium Indian Petrol Dealers. “First is dynamic pricing (where the price is fixed depending on the oil company), and second transportation.”

Hindustan Petroleum Corporation Limited, Indian Oil Company and Bharat Petroleum Corporation Limited are major suppliers. Among them, one company has a direct pipeline from Visakhapatnam to its filling unit in the outskirts of Hyderabad. The other two don’t run direct pipelines, but take supply from a company having a direct link with Visakhapatnam. When the companies supply petrol and diesel to various points in state and within a city, dynamic pricing and transportation comes into play.

Similar is the case with gas prices. Companies having bottling units in city outskirts get their supply from Visakhapatnam via road link. “The transport cost from Visakhapatnam comes into picture, resulting in slight variation in prices depending on the supply location,” said Mellacheruvu Venkateswara Rao, president Telangana LPG distributors association.

Worried over increasing trend of prices, urban consumers say that prices of other essential commodities are also a factor to worry about. “Usage of cooking gas or liquid fuels by individuals can be limited, but their rising prices have an effect on prices of vegetables, grains and and other commodities,” said KV Vishnu Rao, a private teacher.

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