The LPG gas price works by being regulated by the government of India. The government sets the price of LPG gas cylinders, which are then sold to consumers by various oil marketing companies such as Indian Oil, Hindustan Petroleum, and Bharat Petroleum. The price of LPG gas cylinders is determined by the average international price of crude oil and the cost of production. The government also provides subsidies to consumers, especially for domestic LPG gas cylinders.
The subsidy amount is determined by the government and is usually provided to consumers through the oil marketing companies. The subsidy amount is typically lower for non-domestic LPG gas cylinders. The price of LPG gas cylinders can vary depending on the location and the oil marketing company selling it.
The Economic Times article does not provide detailed information on how the LPG gas price is calculated. However, it mentions that the government has increased the price of LPG gas cylinders several times in the past few years to reduce the subsidy burden. The article also mentions that the oil marketing companies have been struggling to manage the subsidy burden, leading to delays in LPG gas bookings.