The government has rolled back its decision to raise LPG prices by Rs 4 per cylinder every month as the move was seen contrary to its Ujjwala scheme of providing free cooking gas connections to the poor. Oil and Gas Minister Dharmendra Pradhan said that as of 28 December, there is no plan to increase or decrease the basic subsidy and would be provided to needy consumers.
It was felt that raising prices was giving a contrary signal to users. On the one hand, the government was pushing for giving free cooking gas connections to the poor, but on the other, it was raising prices every month. Every household is entitled to 12 cylinders of 14.2-kg each at subsidised rates in a year. Any requirement beyond that is to be purchased at market price.
The government had previously ordered public sector oil marketing companies (OMCs) to raise domestic cooking gas (LPG) prices by Rs 4 per cylinder every month beginning June 2016 with a view to eliminating subsidies and oil firms were authorised to increase price of subsidised domestic LPG cylinder by Rs 2 per 14.2-kg cylinder per month (excluding VAT) with effect from July 1, 2016. Oil companies had hiked LPG rates on 10 occasions since that go-ahead, however the order was withdrawn in October and since then there has been no monthly hike. Though, there has been increase in price of subsidised LPG even after October mainly because of taxation issues.
Start Research-backed Investing ...Now. Subscribe to Sapphire
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: