1. Relief for your kitchen budget? Government may scrap monthly LPG price hike

Relief for your kitchen budget? Government may scrap monthly LPG price hike

The government is likely to scrap the monthly increase in gas prices, agency reports said citing sources.

By: | Updated: December 28, 2017 11:53 AM
Free LPG, LPG scheme, free LPG scheme, Pradhan Mantri Ujjwala Yojana, Narendra Modi, LPG cylinder, PMUY refill rate Oil marketing companies have not increased prices of LPG since October 1. (Image: Reuters)

The government is planning to scrap the monthly increase in cooking gas prices, agency reports said citing sources. Oil marketing companies have not increased prices of LPG since October 1. State-owned oil firms revise rates of LPG and ATF on 1st of every month based on average oil price and foreign exchange rate in the previous month. Initially, the hike in LPG rate was Rs 2 per month which was doubled to Rs 3 from May this year. Non-subsidised LPG rates have moved in tandem with their cost since December 2013. There are as many as 18.11 crore customers of subsidised LPG 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 2.66 crore users of non-subsidised cooking gas including those who gave up subsidy on call by Prime Minister. 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.

The government last year had asked state-run oil firms to raise prices every month to eliminate all the subsidies by March 2018. Since the implementation of the policy of monthly increases from July last year, subsidised LPG rates have gone up by Rs 76.51 per cylinder. A 14.2-kg LPG cylinder was priced at Rs 419.18 in June 2016. 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. Initially, the hike in LPG rate was Rs 2 per month which was raised to Rs 3 from May this year. The November 1 hike in the LPG price was the sixth since the May 30 order of the oil ministry to raise rates by Rs 4 per cylinder every month.

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