Subsidised cooking gas (LPG) price was on Friday raised by over Rs 7 per cylinder, in line with the government's decision to hike prices every month so that all subsidises are eliminated by this fiscal-end.
A subsidised 14.2-kg LPG cylinder now costs Rs 487.18 in Delhi as against Rs 479.77 previously, according to Indian Oil Corporation, the nation’s largest fuel retailer.
Oil Minister Dharmendra Pradhan had on 31 July told 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 2018.
Rates were, however, raised by Rs 2.31 per cylinder on the previous due date on 1 August, 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 2016, 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 IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) 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 subsidised rates in a year. Any requirement beyond that is to be purchased at market price.
The price of non-subsidised LPG or market-priced cooking gas has also been hiked by Rs 73.5 to Rs 597.50 per bottle.
Rates were at the last revision cut by Rs 40.
Simultaneously, the oil companies also raised prices of aviation turbine fuel (ATF) by 4 percent, in keeping with rising global rates.
(This story has been edited for length)
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