LPG prices to be hiked by Rs 4 per month: Government

The government has ordered state-run oil companies to raise cooking gas(LPG) prices by Rs 4 per cylinder every month.

Oil minister Dharmendra Pradhan intends to eliminate all subsidies on cooking gas by March next year.

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).

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Now, the quantum has been doubled to bring down the subsidy to zero, Dharmendra Pradhan told the Lok Sabha today.

"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.

"The government in 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.

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.

Every household in India 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.

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.