Published: Wed, August 02, 2017
Hi-Tech | By Ellis Neal

Centre orders LPG prices to be hiked by Rs 4 per month

Centre orders LPG prices to be hiked by Rs 4 per month

The government told the Lok Sabha on Monday that it had authorised the oil marketing companies to raise the subsidised cooking gas price to eliminate all subsidies by March 2018. K C Venugopal of Congress raised the issue during the Zero Hour where he said that the move will adversely affect the common man and there was no justification of it when the crude oil prices had gone down. "The decision (to increase the price) implies that the government proposes to eliminate subsidy on LPG cylinders from March onwards". The government had previously asked the oil companies to raise rates of subsidised domestic LPG by two rupees per 14.2-kg cylinder per month. Pradhan said the Government continues to modulate the prices of domestic LPG and PDS kerosene by way of subsidy support.

In the Rajya Sabha, Opposition members attacked the Centre over the decision to remove subsidies for cooking gas.

He said the GoM had also said that price should be periodically revised based on the increase in paying capacity as reflected in rising per capita income. He found support from Trinamul Congress (TMC) and Left MPs. "The BJD will approach the people and protest against the anti-people decision of the Modi government", the Minister informed.

Presently every household is entitled to 12 cylinders of 14.2-kg each at subsidised rates in a year and extra requirement beyond that is purchased at market price.

"Nonetheless, the deregulation in LPG prices will open the market for private players and OMCs may face increased competition from private or standalone refineries over the longer term", he said.

While raising the matter, Trinamool Congress leader Derek O'Brien said it is the social commitment of the Centre to provide cooking gas at subsidised rates.

The AITC Member pointed that out of 18.11 crore people using subsidised LPG, there were 2.5 crore poor women who were being given the cylinder under the Ujjwala schemes.

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