Facing ire from opposition parties, the government is likely to put on hold its decision to authorise oil marketing companies (OMCs) to increase the effective price of liquefied petroleum gas (LPG) cylinders by Rs 4 per month in order to reduce and finally eliminate the subsidy burden. However, OMCs will continue to increase the price of kerosene by 25 paise per month to completely do away with the subsidy on the fuel. According to a source close to the development, OMCs will continue the same course of action for LPG as was followed till now — increase or decrease the price depending on international prices. “Though subsidy on LPG cannot go on for perpetuity and will have to stop at some point in time, right now it is difficult to say when it will be completely withdrawn,” said the source.
Petroleum minister Dharmendra Pradhan had on July 31 told the Lok Sabha in a written response that “the government vide its order dated 30th May, 2017 has again authorised OMCs to continue to increase the effective price of subsidised domestic LPG by Rs 4 per cylinder effective from 1st June, 2017 per month (excluding VAT as applicable in different states/Union territories) till the reduction of government subsidy to ‘nil’, or till March 2018, or till further order, whichever is earliest”. Read More…
Credit By : The Financial Express
Latest posts by The Financial Express (see all)
- Bid submission date for 5,000 MW solar projects likely to be extended - May 15, 2018
- ‘At Least 40,000 Passengers Will Ride The Bullet Train By 2022’ - March 5, 2018
- India’s Crude Steel Production Grows By 6% In 2017 - February 7, 2018