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Govt puts on hold Rs 26.5 price hike on non-subsidized LPG cylinders

02 Nov 2012 Evaluate

Facing stiff opposition, the government has put on hold the Rs 26.5 price hike on non-subsidized cooking gas (LPG), which consumers buy beyond their cheaper quota of six subsidized cylinders. The petroleum ministry reportedly late night sent out an instruction to public sector oil marketing firms for no hike. Interestingly, this decision has more raised more eyebrows than win applaud by common man, which comes just three days before Himachal Pradesh votes for a new government.

Earlier on November 1, the prices of LPG cylinders, which consumers buy beyond the quota, were hiked by Rs 26.50 to Rs 922 per unit on firming international rates.

The government had in September capped the supply of subsidized domestic LPG cylinders to six per household in a year. Any requirement above this would have to be bought by the consumers at market rate, which is more than double the subsidized price of Rs 410.42 per cylinder in Country’s capital, Delhi. State-owned oil firms review rates of non-subsidized LPG on first of every month based on the average imported cost and rupee-US dollar rate during the previous month.

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