The government has ordered state-run oil companies to raise subsidised cooking gas (LPG) prices by Rs4 per cylinder every month to eliminate all the subsidies by March next year, oil minister Dharmendra Pradhan said on Monday.
The 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 Rs2 per 14.2-kg cylinder per month (excluding VAT).
Now, the quantum has been doubled so as to bring down the subsidy to nil, he said in a written reply in the Lok Sabha.
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.
“Public sector oil marketing companies (OMCs) were authorised to increase price of subsidised domestic LPG cylinder by Rs2 per cylinder (14.2-kg) per month (excluding VAT) with effect from 1 July 2016,” he said.
Oil companies had hiked LPG rates on 10 occasions since that go-ahead. Read More…