Marginal hike in LPG, kerosene prices as govt reduces subsidy

Looking at eliminating subsidy on kerosene and LPG through small increases every month, the Centre on Monday hiked the price of subsidised cooking gas and kerosene by about Rs 2 per cylinder and kerosene rate by 26 paisa a litre.

The Centre had only recently increased petrol and diesel prices last week.

Oil firms had last raised price LPG by Rs 5.57 to Rs 440.90 per 14.2-kg cylinder on April 1. This hike came as the state-owned oil firms on previous two occasions --February 1 and March 1 --did not effect any significant raise in prices in view of assembly elections in states like Uttar Pradesh.

Prior to that, they had raised rates by nearly Rs 2 per cylinder for eight months in line with government decision to cut subsidises through calibrated increases every month. Also, the rate of nonsubsidised cooking gas was cut by Rs 92 per cylinder in line with international trends. The reduction comes on the back of a Rs 14.50 per cylinder cut on April 1.

Non-subsidised LPG is bought by consumers who have either given up their subsidies or exhausted the quota of 12 bottles of 14.2-kg in a year at below market price.

Subsidised kerosene rate was hiked by Rs 0.26 per litre. A litre of kerosene now costs Rs 19.55 in Mumbai.

Also, the price of jet fuel, or ATF, was cut by a marginal 0.4% to Rs 51,696 per kilolitre.