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Govt raises LPG prices by Rs 7 per cylinder; ATF increased by 4%

Cylinders to now cost Rs 487.18 in Delhi; aviation turbine fuel to cost Rs 50,020 per km

Press Trust of India  |  New Delhi 

LPG, gas

Subsidised cooking gas (LPG) price was on Friday raised by over Rs 7 per cylinder, in line with the government's decision to hike every month so that all subsidies are eliminated by the end of this financial year.

A subsidised 14.2-kg LPG cylinder now costs Rs 487.18 in as against Rs 479.77 previously, according to Indian Corporation, the nation's largest fuel retailer.


Minister Dharmendra Pradhan had on July 31 told the that the had asked state-owned companies to raise subsidised cooking gas (LPG) by Rs 4 per cylinder every month to eliminate all the subsidies by March next year.

Rates were, however, raised by Rs 2.31 per cylinder on the previous due date on August 1 and the companies have effected a larger hike to equalise that, sources said.

Since the implementation of the policy of monthly increases of Rs 2 from July last year, subsidised LPG rates have gone up by over Rs 68 per cylinder. A 14.2-kg LPG cylinder was priced at Rs 419.18 in June 2016.

The had previously asked IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) by Rs 2 per 14.2-kg cylinder per month (excluding VAT).

LPG prices
(Courtesy: PTI)
The quantum has now been doubled so as to bring down the subsidy to nil.

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.

The price of non-subsidised LPG or market-priced cooking gas has also been hiked by Rs 73.5 to Rs 597.50 per bottle. Rates were at the last revision cut by Rs 40.

Simultaneously, the companies also raised of (ATF) by 4 per cent, in keeping with rising global rates.

ATF, or jet fuel, now costs Rs 50,020 per kilolitre, Rs 1,910 more than Rs 48,110 previously. This hike comes on the back of a 2.3 per cent increase effected from August 1.

Also, the price of kerosene sold through public distribution system (PDS) was hiked by about 25 paise per litre.

The is adopting the same policy as in LPG for eliminating subsidy on kerosene. Since July 1 last year, rates have been hiked by 25 paise per litre each fortnight.

While has been declared a kerosene-free state, the fuel now costs Rs 22.27 per litre in Mumbai compared to Rs 22 previously. Kerosene was on July 1, 2016, priced at Rs 15.02 per litre in Mumbai.

State-owned firms revise rates of LPG and on 1st of every month based on average price and foreign exchange rate in the previous month.

Today's hike in the LPG price is fourth since the May 30 order of the ministry to raise rates by Rs 4 per cylinder every month.

There are as many as 18.11 crore customers of subsidised LPG in the country. These include 2.6 crore poor women who were given free connections during the last one year under the Pradhan Mantri Ujjwala Yojna.

There are another 2.66 crore users of non-subsidised cooking gas.

First Published: Fri, September 01 2017. 17:33 IST
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