Amid burden of inflation on common man, the Petroleum and Natural Gas Ministry Oil Ministry has proposed a phased hike of diesel price and cooking gas LPG.
The hike will be of Rs 3-4.50 per litre in diesel and Rs 100 in cooking gas LPG rates.
The ministry has also proposed a relief on cap of cooking LPG cylinders as raising six to nine number of subsidized LPG cylinders for each household in a year.
The fuel hike proposal come up with a Cabinet note to reduce subsidy bill and manage a record Rs 160,000 crore deficit due to sale of fuels below cost, according to sources.
In price of cooking gas, a quarterly increase of Rs. 50 per cylinder has proposed that will implement from April. While on diesel, it has proposed a 3-4.50 per litre hike in a month phase.
The Finance Ministry has refused to raise the cap on the supply of subsidised LPG as of increasing subsidy burden of the oil marketing companies.
Moreover, on basis of the Kelkar Committee’s recommendations, Oil Ministry has hiked a phased price of LPG by Rs. 100 per cylinder in two phases. The price hike of LPG may be of Rs. 130 a year, report said.
The move would be carry on during the next two-four years till the subsidy is wiped out and down to the bare minimum.
