LPG subsidy to be eliminated by March 2018, Centre orders price hike of Rs 4 every month

LPG subsidy to be eliminated by March 2008, Centre orders price hike of Rs 4 every month.

New Delhi, July 31: In a blow to LPG customers the Centre had directed the state run oil companies to increase LPG prices by Rs 4 per cylinder every month to eliminate subsidy by March 2018.

According to earlier orders, every household was allowed 12 cylinders of 14.2-kg each at a subsidised rate. Any need beyond that is to be bought at market price.

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 until 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 LPG.