LPG Cylinder Prices to be hiked by Rs 4 Every Month
KalingaTV News Network
New Delhi: Union petroleum and Natural Gas Minister Dharmendra Pradhan on Monday asked state-run oil companies to raise subsidised cooking gas (LPG) prices by Rs 4 per cylinder every month to eliminate all the subsidies by March next year.
Pradhan in a written reply in the Lok Sabha said, “The government vide its order dated May 30, 2017, has again authorised OMCs to continue to increase the effective price of subsidised domestic LPG by Rs 4 per cylinder effective June 1, 2017, per month (excluding VAT) till the reduction of government subsidy to ‘nil’, or till March 2018, or till further orders, whichever is earliest”. The order came onto effect from 1st of June, he added.
The Union Government had previously asked Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) by Rs. 2 per 14.2-kg cylinder per month (excluding VAT).
With this new move, the quantum has been doubled so as to bring down the subsidy to nil. The hike was also a reflection of hiked tax rates on it under the Goods and Services Tax regime.
Every household is entitled to 12 cylinders of 14.2-kg each at subsidised rates in a year. Any requirement beyond that is to be purchased at market price.
Currently, there are as many as 18.11 crore customers of subsidized LPG in the country. These include 2.5 crore poor women who were given free connections during the last one year under the Pradhan Mantri Ujjwala Yojna.
Besides, there are as many as 2.66 crore users of non-subsidised cooking gas across the country.