Given Up LPG Subsidy? Here’s Rs.86 Extra Burden on Non-Subsidized Gas Cylinder From Today

For those who have given up LPG subsidy on voluntary basis will be burdened with more charges of Rs.86 per cylinder with effect from March 1, 2017 and those whose LPG subsidy was removed under Rs.10 lakh cap will also be equally affected by the increase in cylinder price.

In a statement, the ministry of Petroleum and Natural Gas said, "With effect from 1st March, 2017, non-subsidized price of LPG cylinder has increased by Rs.86. This is in line with the rise in global LPG product prices. However, there will be no impact on the LPG consumers receiving subsidized refills."

While subsidy will continue unaffected, those who have given up either voluntarily or under duress will be burdened more now. It means, a consumer will have to pay Rs.737 for a new refill in Delhi from today and will receive a subsidy amount of Rs.303 in his/ her account as the net price for the subsidized consumer will remain at Rs.434, which was never touched.

But for those who are out of the subsidy ambit, it means they have to pay Rs.737 and also Rs.10 to 20 the boy who visits house to deliver it. In all, an average customer will cough up Rs.760 per cylinder, but if the delivery boy seeks more than that and refuses to give change, it means full Rs.800 per cylinder in many metros of India.

This is when the Indian rupee is hovering around Rs.66 and 67 per US dollar. In case, the rupee vlaue further shrinks to Rs.69 tp 70, the non-subsidized LPG gas cylinder would cost Rs.800 flat per consumer, which is almost double the price compared to 2013-14 when the previous government of Dr. Manmohan Singh capped the LPG prices despite several fluctuations in the world oil and gas prices.

One comment

  1. The govt is looting public by abnormally raising the price of Gas Cylinders. Modi govt is playing a dual role by giving publicity that this govt is working for the public but actually putting enormous burden by increasing taxes and prices of essential commodities like petroleum products when prices of these materials are coming down in international markets but these decreases are absorbed by petroleum countries and govt by increasing ED. While the benefits are not passed to poor of the country.

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