Amid reform measures over fuel prices, the Cabinet Committee on Political Affairs (CCPA) has approved the proposal to raise the cap on supply of subsidised LPG cylinders from 6 to 9 per year per household.
The government has also approved to deregulate diesel prices, permitting hike over diesel prices as per passage of time.
It has been said that Diesel prices hike move may be come in effect from today with hike of 1.50-2.0 per litre in the first phase.
Union Oil Minister M Veerappa Moily refused to share the details or formula for a phased price hike in diesel prices.
Offering a free hand to Oil companies to make changes over price of diesel periodically, CCPA, headed by Prime Minister Manmohan Singh authorized them raise diesel price till they are able to cover Rs 9.60 per litre loss they incur on the fuel.
There will be no change in price of LPG and kerosene.
No CCPA decision came forward over the Oil Ministry’s proposal to hike LPG price by Rs. 50 immediately and then in a phased manner to wipe out the nearly Rs. 500 per cylinder subsidy.
A cylinder of 14.2Kg LPG costs Rs. 410.50 and as per new limit of 9 cylinders will cost a near market price of Rs. 895.50 per bottle, reports said.
“We have now (by partially deregulating diesel prices) given liberty to all our OMCs to bring in small change from time to time,” Moily told reporters, appreciating Cabinet decision.