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Govt may increase LPG, diesel price soon

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Story Dated: Monday, January 13, 2014 10:52 hrs UTC

Ministry of Petroleum and Natural Gas may raise price of LPG and diesel.

The ministry may increase subsidised LPG from the present nine cylinders to 12, but may go for a price hike of between Rs. 75 and Rs. 100 per cylinder. Sources indicated that the ministry may announce a one-time hike of rupees two per litre in diesel price.

Increasing the number of subsidised cylinders would add an additional burden of 5800 crore on the government. Price hike on subsidised cylinders will reduce burden.  Sources said the union government may also increase the rates of piped natural gas (PNG) and compressed natural gas (CNG).

Ealier this month, union government hiked the price of LPG by rupees 230 per cylinder.

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