The Indian Oil Corps (IOC) has announced a reduction of Rs 92 per cylinder on the non-subsidized LPG prices which will prove to be a relief of common people of India. Although this will prove to benefit the people using non-subsidized LPG cylinders, the subsidized cylinder prices have hiked by 1.87 Rupees.
The major cut-off in prices of non-subsidized cylinders is a result of international trends and comes in-line to the reduction of Rs 14.50 on April 1. The non-subsidized cooking gas cylinders are bought by people who gave up their subsidies or exhausted the quota of 12 bottles of 14.2 kg in a year at below market price.
But the subsidized LPG users will have to face a price increase of Rs 1.87 and kerosene rate increased by 26 paisa per litre. This hike is a result of government’s try to eliminate subsidy on fuel through small hikes instead of a huge change all at once. The government is planning for removing subsidy on kerosene by incrementing as small as a few paisa every month and the prices of fuels change each month.
Apart from cooking fuel, the price of jet fuel or ATF was cut by a marginal 0.4% to Rs 51,696 per kilolitre. This reduction comes on back of a 5.1% cut effected from April 1, oil companies said. Oil firms revise rates of ATF and cooking fuel on 1st of every month based on oil price and foreign exchange rate in the preceding month.