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LPG price up by Rs 1.50 per cylinder

Govt had asked state-run oil firms to increase prices of cooking gas by up to Rs 4 per unit every month

Press Trust of India  |  New Delhi 

LPG

(LPG) price was hiked by Rs 1.50 per cylinder in line with the government decision to raise rates every month to eliminate subsidies by March.

A subsidised 14.2-kg cylinder will from today cost Rs 488.68 in as against Rs 487.18 previously, said.

The hike comes on the back of over Rs 7 per cylinder increase effected from September 1. In addition to this, Sunday's hike in the price is the fifth increase since the government's May 30 order that asked state-run firms to raise rates by Rs 4 per cylinder every month.

Meanwhile, or was also hiked by a steep 6 per cent on firming international rates, the third straight increase in rates since August.

Aviation turbine fuel (ATF) will now cost Rs 53,045 per kilolitre (kl) in Delhi, Rs 3,025 per kl more than Rs 50,020 previously, according to a price hike notification by Indian Corp, the nation's biggest fuel retailer.

This the third consecutive monthly hike in ATF price, the last being by 4 per cent (Rs 1,910 per kl) on September 1.

Minister Dharmendra Pradhan had on July 31 told the Lok Sabha that the government had asked state-run firms to raise subsidised (LPG) prices by up to 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 August 1 and the companies effected a large hike on September 1 to equalise that, sources said.

Since the implementation of the policy of monthly increases from July last year, subsidised rates have gone up by over Rs 69.50 per cylinder. A 14.2-kg cylinder was priced at Rs 419.18 in June 2016.

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

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 or market priced has also been hiked by Rs 1.50 to Rs 599 per bottle.

Rates at the last revision on September 1 were hiked by Rs 73.5 to Rs 597.50 per bottle.

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

There are as many as 18.11 crore customers of subsidised in the country. These include over 3 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

First Published: Sun, October 01 2017. 16:29 IST
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