LPG price hiked by Rs 7

Vastavam web:As per the decision taken by the government to withdraw the subsidy on domestic LPG cyienders by the end of this year, the oil companies have raised the price of each cylinder by Rs.7. Oil Minister Dharmendra Pradhan had on July 31told the Lok Sabha that the government had asked state-owned 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.

Rates were, however, raised by Rs 2.31 per cylinder on the previous due date on August 1
and the oil companies have effected a larger hike to equalise that, sources said.
Since the implementation of the policy of monthly increases of Rs 2 from July last year,
subsidised LPG rates have gone up by over Rs 68 per cylinder. A 14.2-kg LPG cylinder was
priced at Rs 419.18 in June 2016. The government had previously asked oil companies to
raise rates of subsidised domestic LPG by Rs 2 per 14.2-kg cylinder per month (excluding
VAT). The quantum has now been doubled so as to bring down the subsidy to nil. Every
household is entitled to 12 cylinders of 14.2-kg each at subsidized rates in a year.