Oil companies on Thursday announced a steep hike in the price of non subsidised domestic LPG cylinder in Delhi by Rs 73.50. The new price of cylinder Rs 597.50 will be applicable from Friday.
The unprecendent hike comes exactly amonth after the Oil Minister Dharmendra Pradhan told Lok Sabha that the government has asked state-run oil companies to raise subsidised cooking gas (LPG) prices by Rs 4 per cylinder every month to eliminate all the subsidies by March next year.
The government had previously asked IOC, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) by Rs 2 per 14.2-kg cylinder per month (excluding VAT).
Now, the quantum has been doubled so as to bring down the subsidy to nil, he said in a written reply in the Lok Sabha on July 31.
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.
According to IOC, a non-subsidised LPG or market priced cooking gas costs Rs 524 per cylinder in Delhi, untill Thursday.
The oil companies have been raising the price of aviation turbine fuel or jet fuel simulteneously in line with rising global oil rates.
State-owned oil firms revise rates of LPG and ATF on 1st of every month based on average oil price and foreign exchange rate in the previous month.