Low petrol prices, phased rise in LPG rate to bring down subsidy

Analysts say the subsidy burden on both LPG and kerosene is likely to be around Rs 35,000 crore

Low international petroleum prices, coupled with phased increase in price of both kerosene and liquefied petroleum gas (LPG), are likely to bring relief to the government on the oil subsidy front. Oil marketing companies (OMCs) are passing on the reduction in government subsidy on LPG by increasing prices by Rs 4 every month.

“Depending on the cost of the cylinder, every month there is a marginal reduction in the subsidy by increase in prices of Rs 4 a cylinder,” said a senior executive of an OMC.

According to analysts’ estimates, the subsidy burden on both LPG and kerosene is likely