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Public sector oil marketing companies (OMCs) have been authorised to increase the price of subsidised LPG cylinders by ₹4/cylinder every month, so that all subsidies can be eliminated by March 2018.
In a response to a query in the Lok Sabha, Minister of State (Independent Charge) for Petroleum and Natural Gas, Dharmendra Pradhan, said the price hike order has been effective from June 1. The hike in price excludes value added tax (VAT), and will be implemented till the government subsidy on LPG has been nullified or till March 2018, whichever is earlier. The government hopes to do away with budgetary support on LPG by this mechanism.
The Centre had initially allowed companies to hike subsidised domestic LPG cylinder by ₹2 per cylinder (14.2 kg) per month, and this was revised to ₹4 per cylinder.
The price for the other subsidised cylinders (such as the 5 kg ones) will be increased proportionately by the OMCs.
At present, households are entitled to 12 cylinders of 14.2 kg each a year at subsidised rates.
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