Govt Orders to Hike LPG Price by Rs 4 Every Month

New Delhi: The government has ordered State-owned oil marketing companies to increase the prices of subsidised cooking gas (LPG) by Rs 4 per cylinder every month. The decision was taken to eliminate all the subsidies by March next year.

Minister of State for Petroleum and Natural Gas Dharmendra Pradhan in a written reply in the Lok Sabha said, “Public sector oil marketing companies (OMCs) were authorised to increase price of subsidised domestic LPG cylinder by Rs 2 per cylinder (14.2-kg) per month (excluding VAT) with effect from July 1, 2016”.

The State-run companies had increased LPG rates on 10 times since then. “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.

Earlier in July last year, the government had asked the oil companies to raise prices by Rs 2 and now it has doubled the quantum so as to bring down the subsidy to nil.