The government has asked state oil firms to raise cooking gas prices by Rs 4 every month till the entire subsidy — about Rs 87 for a 14.2 kg cylinder in Delhi — is wiped out. The government has already removed price controls on most fuels.
For cooking gas, it undertook the ‘Give It Up’ campaign and had earlier authorised oil marketing companies to increase the price of subsidised LPG cylinders by Rs 2 a month. It has now doubled the amount to accelerate elimination of subsidy.
“The government vide its order dated May 30, has again authorised OMCs to continue to increase the effective price of subsidised domestic LPG (14.2 kg cylinder) by Rs 4 per cylinder effective from June 1per month (excluding VAT as applicable in different state or UT ) till the reduction of government subsidy to ‘nil’, or till March 2018, or till further orders, whichever is earliest,” oil minister Dharmendra Pradhan told Parliament. The price for the other subsidized cylinders, such as those of 5 kg, would be increased proportionately.
As on July 1, India had 18.12 crore subsidised LPG cylinder customers, of which, 2.5 crore customers are poor women who got connection under the Pradhan Mantri Ujjwala Yojna in the last one year. The number of nonsubsidised consumers stands at 2.66 crore.
Oil Minister Pradhan said that prices of LPG is revised on monthly basis and subsidy on LPG varies from market to market-based on the retail selling price. The subsidy amount on a 14.2 kg cylinder transferred to the account of a consumer in Delhi, for the month of July 2017, was Rs 86.54.
“The subsidy fluctuates and was low in July, while it is expected to increase to Rs 100 in August. Even if we start increasing the prices by Rs 4 a cylinder, it is unlikely that it would be eliminated by March,” a senior executive with one of the state-run OMCs told ET.
The price of subsidised LPG has already increases to over Rs 477 for the 14.2 kg cylinder in Delhi in July, from Rs 419 in June last year.
Source : LPG: LPG prices to be hiked by Rs 4 per month as Centre pushes to end subsidies
For cooking gas, it undertook the ‘Give It Up’ campaign and had earlier authorised oil marketing companies to increase the price of subsidised LPG cylinders by Rs 2 a month. It has now doubled the amount to accelerate elimination of subsidy.
“The government vide its order dated May 30, has again authorised OMCs to continue to increase the effective price of subsidised domestic LPG (14.2 kg cylinder) by Rs 4 per cylinder effective from June 1per month (excluding VAT as applicable in different state or UT ) till the reduction of government subsidy to ‘nil’, or till March 2018, or till further orders, whichever is earliest,” oil minister Dharmendra Pradhan told Parliament. The price for the other subsidized cylinders, such as those of 5 kg, would be increased proportionately.
As on July 1, India had 18.12 crore subsidised LPG cylinder customers, of which, 2.5 crore customers are poor women who got connection under the Pradhan Mantri Ujjwala Yojna in the last one year. The number of nonsubsidised consumers stands at 2.66 crore.
Oil Minister Pradhan said that prices of LPG is revised on monthly basis and subsidy on LPG varies from market to market-based on the retail selling price. The subsidy amount on a 14.2 kg cylinder transferred to the account of a consumer in Delhi, for the month of July 2017, was Rs 86.54.
“The subsidy fluctuates and was low in July, while it is expected to increase to Rs 100 in August. Even if we start increasing the prices by Rs 4 a cylinder, it is unlikely that it would be eliminated by March,” a senior executive with one of the state-run OMCs told ET.
The price of subsidised LPG has already increases to over Rs 477 for the 14.2 kg cylinder in Delhi in July, from Rs 419 in June last year.
Source : LPG: LPG prices to be hiked by Rs 4 per month as Centre pushes to end subsidies
