LPG cylinder prices could rise by ₹100-150 in 1 year. Here’s why
Live MintYou may not have noticed it but the price of subsidised cooking gas rose by an average of ₹10 per cylinder in the July-January period of current fiscal taking the price paid by common man for fuel closer to market rates. But for consumers, the move would mean that their cooking gas price would shoot up by another ₹100-150 per cylinder over the next one year. Sources said that taking advantage of low oil prices, government may give nod to state-run oil marketing companies to increase price of subsidised LPG cylinder gradually so that entire subsidy paid under direct benefit transfer scheme to eligible consumers is eliminated in one year's time. At current global oil prices, if oil companies raise the rate of subsidized LPG cylinder by just about ₹10 per cylinder per month, in 15 months time there would not be any need to extend Central support. The price of a subsidised LPG cylinder currently works to around ₹557 with government providing ₹157 as subsidy directly into the account of eligible consumers.