LPG PRICE HIKE

The Price of the non-subsidized domestic cooking gas cylinders (LPG) was raised by the Oil Companies by Rs 26.50 which was put to hold by the Government on the Eve on the Gujarat and Himachal Elections.The hike announced earlier in the evening would have brought the cost of a non-subsidized cylinder to Rs. 922 in Delhi, Rs 933.50 in Mumbai, Rs.915.25 in Chennai, Rs.950.25 in Kolkata.  But Since it was put on Hold The old Rate of non-subsidized continues.The Price vary in different states depending on local taxes.

The price hike was effected due to the rise in LPG prices in the international market to which the domestic rates have been linked since September 13 when the government decided to restrict the supply of subsidized refills to six. After the six subsidized LPG refills, the cost of which will be borne by the government and upstream oil companies, the rest will have to be paid by the consumers themselves.


The next revision is due on November 30 when there are chances of a further hike in the prices of non-subsidized LPG refills since gas prices in gulf countries from where bulk of India’s import is done, have started moving northwards. They are expected to go further up on the back of harsh winter conditions in the west from December to March, where the LPG is also used for heating.


The no.of Subsidized Cylinders is about 6/year now which may not enough for an middle class family who will be highly affected by the hike.
The Government has been thinking to raise the LPG Subsidized cap from 6 to 9 or 12.This is mainly due to election in HP and Gujarat.

Since Himachal Pradesh is an Hilly region Even normal poor family is using 10 LPG cylinders per year and the LPG hike is bound to have a huge impact on election results. Capitalizing on this the Ruling party has announced free induction heaters if they voted back to power.

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, have expressed unhappiness at the government's LPG move.

What ever decision the Government takes it must keep in the mind the welfare of the Aam Aadmi.At the same time should not bounce back due to threats from opposition and keep national interest above politics.