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Govt hikes price of subsidised LPG by Rs 1.93 per cylinder

India TV Business Desk New Delhi 01 Aug 2016, 19:04:30 PM IST
India TV Business Desk

Marking the second increase in rates in one month, the price of subsidised cooking gas (LPG) was today hiked by Rs 1.93 per cylinder as the government looks to cut down subsidies.

A subsidised 14.2-kg cylinder will now come at a price of Rs 423.09 in Delhi as compared to current Rs 421.16, according to state-owned oil firms.

The rates of LPG were last hiked by Rs 1.98 per 14.2-kg cylinder on July 1.

The government had recently 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 effected 50 paise hikes every month to eliminate subsidies.

The near Rs 2 per cylinder hike in LPG every month is also aimed at doing so. In case of kerosene, the government has allowed state-owned oil companies to raise the price by 25 paise a litre each month for 10 months. The first hike in kerosene rate happened last month and the second was effected today.

A litre of kerosene now costs Rs 15.46 in Delhi. Simultaneously, the oil firms cut prices of non-subsidised LPG, which consumers buy after exhausting their quota of 12, by Rs 50.5 per 14.2-kg cylinder.

Non-subsidised cooking gas (LPG) now costs Rs 487 in Delhi as against Rs 537.50 per cylinder previously. Rates were last reduced by Rs 11 on July 1.

Also, the aviation turbine fuel (ATF) price was cut by 4.2 per cent, reversing a five month upward trend. ATF, or jet fuel, price in Delhi was cut by Rs 2,080.5 per kilolitre (kl), or 4.2 per cent, to Rs 47,206.68, oil companies said.

This reduction reverses five straight monthly increases in rates, last being on July 1 when prices were hiked by 5.5 per cent.

In the five increases, ATF rates have gone up by 25 per cent, or Rs 9,985.87, per kl since March.

(With PTI inputs)