State-run oil companies raised the price of subsidised cooking gas by Rs 2 per cylinder, the second such increase in a month. The step will further cut subsidy that has already shrunk sharply due to lower oil prices.
Raising LPG prices by small amounts in quick succession follows the government’s recent move to allow oil companies to raise the price of kerosene by 25 paise every month for 10 months, another bid at reducing the subsidy burden on the government. Oil price collapse has brought down total fuel subsidy to Rs 27,571 crore in 2015-16 from Rs 76,285 crore in 2014-15.
Subsidised cooking gas prices have crawled up at a time when price of commercial LPG has fallen, reducing the gap between the two to about Rs 64 per cylinder. In Delhi, a subsidised 14.2-kg cylinder will now cost Rs 423.09, compared with Rs 487 for non-subsidised LPG. Pernell McPhee JerseyShare This