LPG price hike for third time since July
Posted on: 01/Sep/2016 4:28:13 PM
It is now the third time since July that the subsidized cooking gas better known as the LPG is price hiked today. This time, the price hike is about Rs 2 per cylinder. There was cut down in price of jet fuel by 3.8 percent.
Accordingly, a 14.2 kg LPG cylinder will be priced Rs 425.06 in Delhi while the same was Rs 423.09 earlier. Since July, this is the third price hike on LPG cylinders as the government has decided to impose small hike month on month so as to cut down on the subsidies.
A Rs 1.93 hike was imposed in August 2016. On 1st of July, a price hike of Rs 1.98 per 14.2 kg cylinder was imposed.
The government devised plans to eliminate subsidies on kerosene and LPG using this price hike method. During November 2014, the diesel price was deregulated. It was then that the UPA government has imposed 50 paise month on month price hike for cancelling out the subsidies.
It is the same with the Rs 2 price hike in LPG gas cylinders. For ten months, the state owned oil companies are free to hike price of kerosene by 25 paise per litre every month.
This third price hike in kerosene will come into effect from today according to which the price per litre of kerosene will be Rs 15.93 in Mumbai. As Delhi is kerosene free, there is no subsidized PDS kerosene getting sold here.
The price of non-subsidized LPG is cut down by the oil firms. Now, the price of non-subsidized LPG is Rs 466.50 which was Rs 487 per cylinder earlier. On 1st August, there was reduction in price by Rs 50.5.
At the same time, there was price cut down on aviation turbine fuel by 3.8 percent which was the second straight cut.
