New Delhi: Subsidized cooking gas (liquefied petroleum gas or LPG) price was hiked on Monday by Rs.1.93 per cylinder, the second increase in rates in one month as the government looked at monthly increases to cut down subsidies.
A subsidized 14.2-kg cylinder will now cost Rs.423.09 in Delhi as against Rs.421.16 previously, according to state-owned oil firms. This is the second straight monthly increase in subsidized cooking gas.
LPG rates were last hiked by Rs.1.98 per 14.2-kg cylinder on 1 July. The government had recently decided to take the diesel route for eliminating subsidies on LPG and kerosene. Diesel price was deregulated in November 2014 after the previous United Progressive Alliance (UPA) government effected 50 paise hikes every month to eliminate subsidies.
The near Rs.2 per cylinder hike in LPG every month is also aimed at doing so. In case of kerosene, the government has allowed state-owned oil companies to raise the price by 25 paise a litre each month for 10 months.
The first hike in kerosene rate happened last month and the second was effected on Monday. A litre of kerosene now costs Rs.15.46 in Delhi. Simultaneously, the oil firms cut prices of non-subsidized LPG, which consumers buy after exhausting their quota of 12, by Rs.50.5 per 14.2-kg cylinder.
Non-subsidized cooking gas (LPG) now costs Rs.487 in Delhi as against Rs.537.50 per cylinder previously. Rates were last reduced by Rs.11 on 1 July. Also, aviation turbine fuel (ATF) price was cut by 4.2%, reversing a five month upward trend.
ATF, or jet fuel, price in Delhi was cut by Rs.2,080.5 per kilolitre (kl), or 4.2%, to Rs.47,206.68, oil companies said. This reduction reverses five straight monthly increases in rates, last being on July 1 when prices were hiked by 5.5%. In the five increases, ATF rates have gone up by 25%, or Rs.9,985.87, per kl since March.