Common man may now have to shell out more to keep his kitchen functioning as government moves ahead to allow state-run oil companies raise its prices every month to reduce oil subsidy burden that has almost doubled this month.
Sources revealed that prices of a cylinder may increase about Rs.4-5 every month. The practice is similar to the one adopted by state-run oil marketing companies in 2016-17 of regularly increasing the price of LPG cylinder by Rs.2 initially and Rs.4 later.
The practice was discontinued in wake of stiff opposition and a realization that it worked contrary to Ujjwala scheme of providing free cooking gas connections to the weaker sections of the society.
A senior official on condition of anonymity said, “The need for revising the price of domestic cooking gas is stronger this year than ever before as the subsidy per cylinder has doubled with effect from February. If the current price trend holds in FY21, it could jack up the government's LPG subsidy bill from Rs 35,605 crore estimated in the Budget.”
Oil companies meanwhile feigned ignorance on increasing the prices of LPG cylinders at regular intervals from FY21 but confirmed that cooking gas prices will be hiked. Although quantum increase in gas prices mayn’t pinch the consumers immediately, it will reduce subsidies provided to them directly into their accounts gradually
