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LPG price increase: Govt aims to save Rs 6,500 cr on subsidy this year

Cooking gas subsidy is capped at 12 cylinders a year, only for those earning under Rs 10 lakh a year

LPG price increase: Govt aims to save Rs 6,500 crore on subsidy this year
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Empty Liquefied Petroleum Gas (LPG) cylinders are seen at a gas distribution centre at Dujana village in Noida (Photo: Reuters)

Shine Jacob New Delhi

The government’s latest decision to raise cooking fuel prices and to do so at regular intervals is part of a plan to restrict the subsidy on liquefied petroleum gas (LPG) and kerosene to below poverty line families. 


The three government-owned oil marketing companies (OMCs) have been asked to raise domestic LPG prices by Rs 4 a cylinder every month. Earlier, from July 1, 2016, the government had allowed them to increase the price by Rs 2 a month. The move is likely to save the government at least Rs 6,500 crore on the petroleum subsidy in this financial year. The monthly