LPG price hike put on hold: 10 latest developments

LPG price hike put on hold: 10 latest developments
New Delhi: Facing stiff opposition from all corners, the government has put on hold the Rs 26.5 increase in price of cooking gas cylinders that consumers buy beyond their quota of six subsidised bottles.

10 latest developments

  1. Prices were revised in keeping with firming international rates.

  2. State-owned oil firms revise rates of non-subsidised LPG on the 1st of every month, as they do for petrol and aviation turbine fuel, or jet fuel, based on the average imported cost and rupee-US dollar rate in the previous month.

  3. Had the price increase not been put on hold, the non-subsidised 14.2 kg cylinder in Delhi would have cost Rs 922, Rs 906.50 in Mumbai, Rs 915.00 in Chennai and Rs 913 in Kolkata.

  4. In October, the price of non-subsidised LPG was hiked by Rs 127 per cylinder.

  5. Each household is now allowed six LPG cylinders a year at the subsidised rate. For consumption beyond that, consumers have to buy non-subsidised cylinders.

  6. The Congress has said that in the states it rules, the number of subsidised cylinders allowed per household will be raised to nine. Congress president Sonia Gandhi had intervened to have this done after the Manmohan Singh government put a cap on subsidised LPG in September this year.

  7. The Manmohan Singh government had announced the decision to put a cap on subsidised cylinders as part of its first big reforms push in months, saying that the difficult economic times called for biting the subsidy bullet. The government had also said that most households did not use even six cylinders a year.

  8. There has been much political protest and the LPG decision was a major reason for the exit of Mamata Banerjee’s Trinamool Congress from the Prime Minister’s coalition, reducing his government to a minority. Ms Banerjee said 24 subsidised cylinders a year for each household was more appropriate. Reacting to today's hike, she said in a Facebook post: "The present UPA government is really becoming irresponsible and intolerable. Even being a minority government, they have been taking all major policy decisions affecting the survival of common people."

  9. Other allies within the government, like the DMK and even Sharad Pawar's Nationalist Congress Party, and those that give external support like Mulayam Singh Yadav and Mayawati too have expressed unhappiness at the government's LPG move.

  10. Prices of non-subsidised 14.2-kg cylinders and those of commercial cylinders of the same size differ because the government has granted exemption from customs and excise duty on non-subsidised LPG cylinders only for domestic consumption to reduce the burden on the common man.