IT

Opposition demands roll-back of LPG price hike

Opposition demands roll-back of LPG price hike

"In May, the government had authorised oil companies to raise LPG prices by Rs 4 every month till March 2018, the minister had said".

The government on Monday said it has asked the oil marketing companies (OMCs) to raise the prices of subsidised cooking gas (LPG) by Rs 4 per cylinder every month. In a written reply, Pradhan informed that the government in its order dated 30 May 2017 has authorised the oil companies to increase the price by four rupees excluding tax per month.

The central government's call to eliminate subsidy on liquefied petroleum gas (LPG) signals a new era of nearly full pass-through of volatile global oil prices to consumers, with little impact on the government balance sheet.

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In the Rajya Sabha, opposition members forced an adjournment even as Petroleum Minister Dharmendra Pradhan said the proposal to revise prices of subsidised LPG cylinders had been made during United Progressive Alliance (UPA) rule and the Modi government wanted subsidies to go only to the poor.

The TMC leader, who gave notice seeking to set aside the business of the day to discuss an important issue, said the government was not fulfilling its social commitment to provide cooking gas at subsidised rates.

The prices of LPG has hiked more than twice this fiscal year.

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Once LPG subsidy is eliminated, the only other sensitive petroleum product that will continue to get subsidy will be kerosene, the consumption of which is coming down due to increased number of LPG users and improvement in rural lighting.

Subsidised LPG now costs ₹477.46 per 14.2-kg cylinder in Delhi.

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. Any requirement beyond that is to be purchased at market price.

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There are as many as 181.1 million customers of subsidised LPG in the country.


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