Narendra Modi Government Likely To Hike LPG, Kerosene Prices

In a bid to wipe out under-recoveries for both the fuels, the Ministry of Petroleum and Natural Gas is mulling a staggered monthly price hike for LPG and kerosene. The government is looking to increase LPG pricing by Rs 5 per month per cylinder and kerosene by Re 1 per litre per month, according to a media report. A Re 1 per litre hike in kerosene will cut under-recoveries by Rs 850 crore per annum.

According to Kirit Parikh, oil and gas expert, "A gradual increase in price is certainly better than no increase at all. Re 1 per month for kerosene is a good price increase."

Parikh was of the opinion that the proposed hike on LPG is much less than what is required. "LPG can bear a much higher burden than just Rs 5 per cylinder per month. Currently the subsidy on LPG cylinders is almost Rs 500. So you need to go a long way. I welcome this as a step towards the right direction," he added.

Earlier, Petroleum Minister Dharmendra Pradhan had said that the price of domestic LPG cylinders will not be increased. He had also added that the number of subsidised refills given to consumers would continue.

"LPG will be provided to the consumers at the same rate at which it is being made available now. No additional burden will be imposed on them. The subsidy and the number of subsidised cylinders that people are getting will be continued by our government," said Pradhan.