A day after hiking the price of non-subsidized cooking gas (LPG) by a steep Rs 220 per bottle, the government is now mulling to raise the quota of subsidized LPG cylinders to 12 per household in a year from the current limit of 9 per household. Further, Finance Minister P Chidambaram has also underscored that there has been demand to roll back the hike of Rs 220 per cylinder of non-subsidised cooking gas (LPG), which customers buy after consuming their quota of nine subsidised cylinders.
With the recent hike, each non-subsidised 14.2-kg cooking gas cylinder currently costs Rs 1,241 in Delhi, about three times more expensive than a cylinder of subsidized LPG. Meanwhile, in Mumbai, the prices have been increased to Rs 1,264.50 per cylinder from Rs 1,038.
It remains to be noted that the latest hike in the prices of non- subsidized cooking gas was third hike in the rates since the past month. Earlier, the price was hiked by Rs 63 a cylinder to Rs 1,017.50 on December 1 and was further increased by Rs 3.50 to Rs 1,021 on December 11, when the government decided to increase the commission for LPG dealers and distributors by Rs 3.51 per cylinder.
With a view to prune its ballooning subsidy bill, the government had capped the supply of subsidised domestic LPG cylinders to six per household in a year in September 2012. The quota was raised to nine bottles per household a year in January 2013. Reports peg state-owned oil firms of currently losing Rs 762.70 per cylinder on the sale of subsidised LPG.
With the recent hike, each non-subsidised 14.2-kg cooking gas cylinder currently costs Rs 1,241 in Delhi, about three times more expensive than a cylinder of subsidized LPG. Meanwhile, in Mumbai, the prices have been increased to Rs 1,264.50 per cylinder from Rs 1,038.
It remains to be noted that the latest hike in the prices of non- subsidized cooking gas was third hike in the rates since the past month. Earlier, the price was hiked by Rs 63 a cylinder to Rs 1,017.50 on December 1 and was further increased by Rs 3.50 to Rs 1,021 on December 11, when the government decided to increase the commission for LPG dealers and distributors by Rs 3.51 per cylinder.
With a view to prune its ballooning subsidy bill, the government had capped the supply of subsidised domestic LPG cylinders to six per household in a year in September 2012. The quota was raised to nine bottles per household a year in January 2013. Reports peg state-owned oil firms of currently losing Rs 762.70 per cylinder on the sale of subsidised LPG.
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