1. LPG gas price subsidy to go, Modi government orders prices to be hiked by Rs 4 per month

LPG gas price subsidy to go, Modi government orders prices to be hiked by Rs 4 per month

The government has ordered state-run oil companies to raise subsidised cooking gas (LPG) prices by Rs 4 per cylinder every month to eliminate all the subsidies by March next year, Oil Minister Dharmendra Pradhan said today.

By: | New Delhi | Updated: July 31, 2017 4:51 PM
LPG, LPG price hike, price hike LPG, LPG news, LPG latest news The government had previously asked Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) by Rs 2 per 14.2-kg cylinder per month. (Reuters)

The government has ordered state-run oil companies to raise subsidised cooking gas (LPG) prices by Rs 4 per cylinder every month to eliminate all the subsidies by March next year, Oil Minister Dharmendra Pradhan said today. The government had previously asked Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) by Rs 2 per 14.2-kg cylinder per month (excluding VAT).

Now, the quantum has been doubled so as to bring down the subsidy to nil, he said in a written reply in the Lok Sabha here. 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.

“Public sector oil marketing companies (OMCs) were authorised to increase price of subsidised domestic LPG cylinder by Rs 2 per cylinder (14.2-kg) per month (excluding VAT) with effect from July 1, 2016,” he said.

Oil companies had hiked LPG rates on 10 occasions since that go-ahead.

“The government vide its order dated May 30, 2017, has again authorised OMCs to continue to increase the effective price of subsidised domestic LPG by Rs 4 per cylinder effective June 1, 2017, per month (excluding VAT) till the reduction of government subsidy to ‘nil’, or till March 2018, or till further orders, whichever is earliest,” he said.

Oil companies have raised rates twice since then, the last being on July 1 when rates were up by a steep Rs 32 per cylinder — the steepest increase in six years. This hike was because of the May 30 order as well as reflection of hiked tax rates under the Goods and Services Tax (GST) regime.

Subsidised LPG now costs Rs 477.46 per 14.2-kg cylinder in Delhi. It was priced at Rs 419.18 in June last year. The rate of non-subsidised LPG, which consumers pay after exhausting their quota of below-market priced bottles, costs Rs 564.

“The price for the other subsidised cylinders (i.e. 5 kg) would be increased proportionately by the OMCs,” Pradhan said. The subsidy on LPG was Rs 86.54 per cylinder for July, he said. There are as many as 18.11 crore customers of subsidised LPG in the country. These include 2.5 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.

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  1. P
    Prakaash mane
    Nov 20, 2017 at 9:05 pm
    Garib adami kahase layega paisa sabsidy cylinder rate itana badega to Kaiser gujarega aam adami apna Jeevan.
    Reply
    1. S
      sushil kumar dubey
      Aug 3, 2017 at 8:16 pm
      majak hai kya mr. pradhan Sarkar gir ne me samaye ni lagta.janta ka paisa per (tree) pr ni ugta.ager hm sir pe bathana ata hai to dharatal pe uttarna bhi ata hai.(middle class)
      Reply
      1. M
        MIGHTY BOMBER
        Aug 1, 2017 at 1:37 pm
        If Members of Parliament have an iota of concern for people of India then they should immediately discuss election by voting machine in Parliament. Government in its fourth year of existence takes a big anti-people decision without a hitch, is opposition in Parliament totally ineffective or in slumber ? Or is there a secret deal between Congress and Bhartiya Janta Party ? It is only because entire election process has been hijacked by Bhartiya Janta Party, they know that they will win by default in future elections and can do whatever they want. Horrible decision on part of present government. Less return on savings, subsidy to rich in the form of loosening of interest rates for loans, no subsidy for ordinary citizen these are distinguishing features of present बचत पर ब्याज घटाओ सरकार.
        Reply
        1. C
          Charan
          Aug 1, 2017 at 9:14 am
          The opposition parties are really week and waste in the sense, if the opposition parties are strong then the government will never dare to increase the prices like this, they will increase petrol price, gas prices, and everything possible by them but, they will never increase central government employees ries, modi ji is this ache din u wanted to say for us... Cheating cheating everywhere cheating.. Congress guys if u want power please be strong don't be like papu's... I'll never vote for BJP Again in my life..
          Reply
          1. A
            AKB
            Jul 31, 2017 at 8:38 pm
            Now pay 4 rupees every month for Achhe Din. Keep it up, Good Governance. We have a government which raises the fuel prices on daily basis and taxes on monthly basis.
            Reply
            1. Harvinder Maini
              Jul 31, 2017 at 5:23 pm
              Modi bhgao desh bchao
              Reply
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