PROPANE Commercial Advantage:
4 (a) Price Advantage of Propane over LPG
Lets take an example of a customer located about 250 Kms from a PSU LPG source and about 750 Kms from
GAIL Vijaipur. The pricing of LPG and Propane as on June 2002 has been taken to illustrate the advantage of Propane over LPG.
Apart from Landed cost difference, one needs to take into consideration, the benefits that Propane gives in terms of having a higher calorific value, being a cleaner fuel (much lesser carbon deposition) and the savings accrued by not using a vapouriser at all. If these are taken, it means a saving of around 5%. And this does not take into account the higher efficiency derived by using Propane gas.
The calculations are as under:
[in
Rs./MT] |
| |
LPG
(PSU) |
PROPANE
(GAIL) |
PROPANE
Advantage PER MT |
| Basic |
14570 |
11780 |
|
| With
ED |
16901 |
13664 |
|
| With
Sales Tax @ 4% |
17577 |
14210 |
|
| With
Terminal Tax |
17577 |
14225 |
|
| Ex
Plant |
17577 |
14225 |
|
| Freight |
550 |
1950 |
|
| LANDED |
18127 |
16175 |
|
| MODVAT |
2331 |
1885 |
|
| LANDED
after MODVAT |
15796 |
14290 |
1506 |
| LANDED
COST DIFFERENCE |
|
|
1506 |
| 2%
MORE CALORIFIC VALUE |
|
|
316 |
| !%
FOR CLEANER FUEL |
|
|
108 |
VAPOURISER
RUNNING COST
Latent Heat 92 Kcal/ Kg |
|
|
850 |
| TOTAL
BURNER TIP ADVANTAGE |
|
|
2780 |
| %
Saving in fuel cost |
|
|
18% |
4 (b) Price Behavior of Propane
PERIOD JULY 1999 TO JUNE 2002
| MONTH |
Propane
(Basic)Rs./M.T. |
LPG
(Basic) Rs./M.T. |
Burner
Tip Advantage |
Savings
p.a. for 200 MT/ month consumption [in Rs. Lakhs] |
| Jul’99 |
8700 |
11000 |
3480 |
|
| Aug’99 |
11310 |
14000 |
3960 |
|
| Sep’99 |
13700 |
16900 |
4557 |
|
| Oct’99 |
13700 |
16900 |
4557 |
|
| Nov’99 |
12730 |
15700 |
4291 |
|
| Dec’99 |
10500 |
14400 |
5182 |
|
| Jan’00 |
10500 |
14400 |
5182 |
|
| Feb’00 |
10500 |
15600 |
6418 |
|
| Mar’00 |
10500 |
17400 |
8272 |
|
| Apr’00 |
11800 |
18500 |
8105 |
|
| May’00 |
11800 |
17500 |
7075 |
|
| Jun’00 |
11800 |
15700 |
5221 |
|
| 12
Month Average |
11462 |
15667 |
5525 |
133 |
| Jul’00 |
11800 |
17110 |
6673 |
|
| Aug’00 |
11800 |
17900 |
7487 |
|
| Sep’00 |
12800 |
17900 |
6487 |
|
| Oct’00 |
15200 |
17900 |
4087 |
|
| Nov’00 |
17000 |
21700 |
6201 |
|
| Dec’00 |
17000 |
21700 |
6201 |
|
| Jan’01 |
17000 |
21700 |
6201 |
|
| Feb’01 |
17000 |
21440 |
5933 |
|
| Mar’01 |
17000 |
21070 |
5552 |
|
| Apr’01 |
15420 |
19090 |
5093 |
|
| May’01 |
13820 |
17460 |
5014 |
|
| June’01 |
13820 |
17460 |
5014 |
|
| 12
Month Average |
14972 |
19369 |
5829 |
140 |
| July’01 |
13820 |
17460 |
5014 |
|
| Aug'01 |
13820 |
16800 |
4334 |
|
| Sep'01 |
13820 |
16800 |
4334 |
|
| Oct'01 |
13820 |
16800 |
4334 |
|
| Nov'01 |
13820 |
15890 |
3397 |
|
| Dec'01 |
13820 |
15890 |
3397 |
|
| Jan'02 |
13820 |
15370 |
2861 |
|
| Feb'02 |
12780 |
15370 |
3901 |
|
| Mar'02 |
12780 |
14890 |
3407 |
|
| Apr'02 |
12780 |
13040 |
1501 |
|
| May'02 |
12780 |
13220 |
1687 |
|
| June’02 |
11780 |
14570 |
2708 |
|
| 12
Month Average |
13303 |
15587 |
3601 |
86 |
| 36
Month Total Savings |
|
|
|
359 |
|
