Subsidised LPG to get dearer by Rs 2 every mth
The government has decided to raise the price of subsidised cooking gas (LPG) refills by nearly Rs 2 every month in a bid to gradually pare the kitchen fuel subsidy. The price of a subsidised LPG cylinder was raised by Rs 1.93 on Monday, the second increase in a month.The rate was last increased by Rs 1.98 on July 1.
A subsidised 14.2-kg cylinder will now cost Rs 423.09 in Delhi, with the subsidy declining to Rs 63.91 per refill.
The move follows a recent decision to raise kerosene price by 50 paise a month for the next 10 months, and indicates the Modi government’s will to bite the bullet on eliminating politically sensiti ve kitchen subsidy .
Hypothetically, the move may end up wiping out the gap between subsidised and market prices of cooking gas used by households, especially if global prices of oil and LPG remain subdued at current levels. In that case, the government could deregulate domestic LPG, paving the way for entry of private competition.
amar ujala newspaper 02/08/2016 : http://epaper.amarujala.com/login.php