Prime News, Nation, New Delhi, July 31:- In a big jolt to LPG consumers the Centre had instructed state run oil companies to hike LPG prices Rs 4 per cylinder per month to eliminate subsidy by March 2018.
Oil Minister Dharmendra Pradhan said today that previously government allowed oil companies to raise Rs 2 per month per cylinder excluding Vaule Added Tax (VAT).
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. Oil companies had hiked LPG rates on 10 occasions since that go-ahead.
Union minister said that the government on May 30, 2017 has again authorised OMCs to continue to increase LPG price by Rs 4 per cylinder effective June 1, 2017, per month (excluding VAT) till the reduction of government subsidy to ‘nil’, or till March 2018, or till further orders, whichever is earliest, he said.
Earlier on July 1 the oil companies hiked the LPG prices by a whopping Rs 32 per cylinder the steepest in six years including hiked tax rates under the Goods and Services Tax (GST) regime.
There are as many as 18.11 crore customers of subsidised LPG in the country. These include 2.5 crore poor women who were given free connections during the last one year under the Pradhan Mantri Ujjwala Yojna.
There are another 2.66 crore users of non-subsidised cooking gas.
-(NAV, Inputs: Agencies)