In the 19th hike since July last year, the price of cooking gas (LPG) on Wednesday increased by Rs 4.50 per cylinder to Rs 495.69. The hikes come as part of government’s plan to eliminate subsidy by raising prices every month. The government had asked state-run oil firms in July last year to raise prices every month to eliminate all the subsidies by March 2018. So far, the price of subsidised LPG rates has gone up by Rs76.51 per cylinder.
According to PTI, the LPG price has been hiked by Rs 4.50 per 14.2kg cylinder to Rs 495.69. The price of non-subsidised LPG or market priced cooking gas has been hiked by Rs 93 to Rs 742 per bottle. Last month, the rate was hiked by Rs 50 to Rs 649 per bottle.
In June 2016, the price of an LPG cylinder was Rs 419.18. 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 state-owned retailers have also increased the price of jet fuel or aviation turbine fuel (ATF) by 2% on firming international rates. This is the fourth straight increase in rates since August.
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. Today’s hike in the LPG price is sixth since the May 30 order of the oil 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.