After Fuel Hike, Non-Subsidised LPG Was Hiked By ₹48; Subsidised By ₹2.34
June 1st, 2018
Image Credit: Indian Express
In another blow to the public, prices of liquefied petroleum gas (LPG) was increased by Rs 48 and Rs 2.34 for non-subsidised and subsidised cylinders, respectively, on June 1, 2018. This comes after the 16-day-long continuous hike in petrol and diesel prices which left the majority of middle-class Indian citizens in a worrisome state.
The new price for a subsidised cylinder in Delhi is Rs 493.55, while that of a non-subsidised cylinder is Rs 698.50. Besides the capital, the new prices for subsidised LPG are Rs 496.65 in Kolkata, Rs 491.31 in Mumbai and Rs 481.84 in Chennai.
Similarly, the new rates for non-subsidised LPG cylinders are Rs 723.50 in Kolkata, Rs 671.50 in Mumbai and Rs 712.50 in Chennai respectively.
LPG Price Hikes In The Past
Notably, the Ministry Of Petroleum and Natural Gas in the first week of May 2018 had refuted reports of alleged hikes in LPG rates over the last few months.
As reported by Zee News, the Ministry’s statement said that there had been a decrease of about Rs. 100 in the retail selling price of non-subsidized LPG.
“This is in reference to some news reports on an increase in LPG prices in the recent months which is not based on facts. In this connection, it is clarified that the retail selling price of LPG (non-subsidized price) at Delhi has come down from Rs 747 in the month of December 2017 to Rs 650.50 in the month of May 2018, a fall of Rs 96.50. This is the price at which a consumer purchases the cylinder refill and the subsidy gets transferred to his account,” said the statement.
It further mentioned that the effective cost to consumer had also considerably come down from Rs.495.69 in December 2017 to Rs.491.21 in May 2018.
Previously, the oil firms could raise the price of subsidised domestic LPG cylinder by Rs. 2 per 14.2-kg cylinder per month (excluding VAT) with effect from July 1, 2016. However, government’s decision to raise subsidised cylinder prices by Rs. 4 every month till the reduction of government subsidy becomes ‘nil’ or March 2018 was withdrawn in December 2017, since it was deemed to be contrary to PM’s Ujjwala scheme, reported NDTV.
Additionally, India saw the steepest ever hike in LPG cylinder prices in March 2017, where the price of non-subsidised cooking gas (LPG) was increased Rs 86 per cylinder to cost Rs 737.50. This was the highest ever recorded hike in LPG rates in Indian history.
Presently, there are 18.11 crore customers of subsidised LPG, and about 2.66 crores non-subsidised LPG users in the country. The government under ‘Give It Up’ campaign has been urging people to give up LPG subsidy.