LPG price hiked by ₹2; kerosene to add ₹2.50 over 10 months

NEW DELHI: Subsidised cooking gas (LPG) price was on Monday hiked by ₹1.93 per cylinder, the second increase in rates in one month as the government looked at monthly

Published on: Aug 2, 2016, 07:23:10 IST

By HT Correspondent

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NEW DELHI: Subsidised cooking gas (LPG) price was on Monday hiked by ₹1.93 per cylinder, the second increase in rates in one month as the government looked at monthly increases to reduce subsidies.

A subsidised 14.2-kg cylinder will now cost ₹423.09 in Delhi as against ₹421.16 previously, according to state-owned oil firms.

This is the second straight monthly increase in subsidised cooking gas. LPG rates were last hiked by ₹1.98 per 14.2-kg cylinder on July 1.

The government has decided to take the diesel route for eliminating subsidies on LPG and kerosene. Diesel price was deregulated in November 2014 after the previous UPA government announced 50 paise hikes every month to eliminate subsidies.

Oil minister Dharmendra Pradhan informed the Parliament on Monday that his ministry has authorised state-run oil companies to increase kerosene prices by 25 paise for the next 10 months — a total of ₹2.5. The first hike in kerosene rate happened last month and the second was effected today.

A litre of kerosene now costs ₹15.46 in Delhi. The under-recovery for the government on subsidised kerosene stood at ₹11,496 crore for the last financial year.

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