In one of the latest announcements, the government has changed its decision on the increase of LPG cylinders prices. As per the latest announcement, now on, the prices of the LPG cylinders will not increase every month.
As per the latest notification, the central government has withdrawn its previous decision to increase prices of the LPG cylinder. As per the previous notification, the government had decided to increase price of LPG cylinder every month.
Price of LPG cylinders will not increase every month now
It was reported that the centre government decided to withdraw its decision of increasing the LPG prices every month, because the decision was reported to be in sharp contrast with the bright scheme, under which, the poor were being offered free gas connections for cooking.
This was government’s decision
Earlier, the centre government had instructed the state-owned oil companies to increase the prices of cooking gas cylinder (LPG) by Rs. 4 per cylinder every month. As per the report, this regulation is in force since June 2016. The report further mentions that the centre government’s intention behind the price hike was to eliminate the subsidy on LPG gas cylinders completely. The centre government wanted to completely take out the subsidy on LPG cylinders by March next year.
On the other hand, this decision was not put into practice in the month of October. State-owned oil and gas companies including Indian Oil Corporation Limited (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) did not increase the price of LPG cylinder in the month of October.
Oil companies were allowed to Increase the subsidy
Earlier, state-owned oil and gas companies were allowed to raise the subsidy of domestic LPG cylinders (14.2 kg). According to the report, the government had allowed an increase of Rs. 2 per month, per cylinder. This increase in the price of LPG cylinder was excluding VAT (Value-added tax). The state-owned oil companies were given this right to increase the price of the LPG cylinders from July 1, 2016. It is further reported that the Oil companies have already increased prices of the LPG cylinder almost 10 times since this approval.
As per the rule, 12 domestic LPG cylinders (14.2 kg) per connection are allowed at the subsidized price. This order translates to one cylinder per house per month. Post 12 cylinders, the consumer needs to pay the market value of the additional cylinders consumed.
Source: Live Mint
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