Govt. takes back LPG price hike order | Fusion - WeRIndia

Indian government had earlier ordered oil companies to raise LPG cylinder prices every month by ₹4 (excluding Value Added Tax) per cylinder starting from July 2016 until the value of cylinder is equal to non-subsidized cylinders.

The motive behind this is to eliminate subsidy on LPG cylinders. The oil companies had followed the orders of government and the prices of cylinders were hiked each month till the month of September 2017.

As per the top source, from October, oil companies had not raised the prices of cylinders as the order was taken back by the government.

Indian government saw the hiking as contrary to its Ujjwala scheme, hence it withdrew its orders. Ujjwala scheme is intended to provide free cooking gas connections to the poor and underprivileged.

As per the existing rules, each household is allowed 12 subsidized cylinders of 14.2 kg per year. If anyone needs beyond that limit, they should buy at prescribed market price.

Initially oil companies were allowed to increase the price of LPG cylinder by ₹2. But, another order was issued dated May 30, 2017 which allows the hike to be doubled. As per this order, the state-owned companies continued rising prices of subsidy LPG cylinder per ₹4 per month until the subsidy becomes zero or March 2018 or till they get the further orders from the government.

However, the constant hike in the prices of the LPG cylinders gave contrary signals to the users and to correct it, the order has been withdrawn by the government.

To correct this, the order was withdrawn.

However, if any hike is seen in the subsidy cylinders after October, it has been due to taxation, but not due to government’s order.

So far, the LPG price has been hiked by ₹76.5 in 19 increments.

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