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Thursday, June 04, 2020

LPG price hiked by Rs 144.5 per cylinder; subsidy to domestic users almost doubled

LPG price was increased to Rs 858.50 per 14.2 kg cylinder from Rs 714 previously, according to a price notification of state-owned oil firms.

By: ENS Economic Bureau | New Delhi | Published: February 13, 2020 4:22:31 am
lpg gas price hiked, lpg gas price in new delhi, lpg gas price in mumbai, lpg gas price in kolkata, lpg gas price in chennai, indane lpg cylinder, lpg gas prices revised, lpg gas price february 2020, what is the cost of lpg cylinder now, how much does an lpg cylinder cost, oil and gas sector news, business news This is the steepest hike in rates since January 2014 when prices had gone up by Rs 220 per cylinder to Rs 1,241.

Cooking gas LPG price on Wednesday was hiked by a steep Rs 144.5 per cylinder due to spurt in benchmark global rates of the fuel. But to insulate domestic users, the government almost doubled the subsidy it provides on the fuel to keep per cylinder outgo almost unchanged.

LPG price was increased to Rs 858.50 per 14.2 kg cylinder from Rs 714 previously, according to a price notification of state-owned oil firms. This is the steepest hike in rates since January 2014 when prices had gone up by Rs 220 per cylinder to Rs 1,241.

Domestic LPG users, who are entitled to buy 12 bottles of 14.2-kg each at subsidised rates in a year, will get more subsidy. The government subsidy payout to domestic users has been increased from Rs 153.86 per cylinder to Rs 291.48, industry officials said. For Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, the subsidy has increased from Rs 174.86 to Rs 312.48 per cylinder. After accounting for the subsidy that is paid directly into the bank accounts of LPG users, a 14.2-kg cylinder would cost Rs 567.02 for domestic users and Rs 546.02 for PMUY users.

The government gave out 8 crore free LPG connections to poor women under PMUY to increase coverage of environment-friendly fuel in kitchens.

Normally, LPG rates are revised on 1st of every month but this time it took almost two weeks for the revision to take place — a phenomenon which industry officials said was due to approvals needed for such a big jump in subsidy outgo. Others said the decision to defer the increase could have been because of assembly elections in Delhi. Delhi voted on February 8.

The Congress accused the government of “electrocuting” the Budget of the common man by raising the price of LPG cylinders. “The Modi government has today electrocuted the budget of the common man. Modi government has today attacked the budget of India’s women. The Modi government with one stroke of the pen has increased the price of gas cylinder by Rs 144, taking the price of non-subsidised gas cylinder to Rs 858.50,” Congress chief spokesperson Randeep Surjewala was quoted by PTI as saying. —with PTI

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